Zhitong Financial APP, Capital Financial Holdings (08239) issued an announcement that in order to adapt to the development of the group and to give the company more flexibility in issuing convertible shares and other fund-raising activities that may be carried out in the future if necessary, the board of directors proposes to increase the authorized share capital of the company from HK $100 million (divided into 2 billion shares) to HK $1 billion (divided into 20 billion shares) by adding an additional 18 billion shares. After the increase in authorized share capital is approved by the shareholders by ordinary resolution at the EGM, the increase will take effect from the date of the EGM.

On April 4, 2022, the company entered into a conditional subscription agreement with the subscribers who had conditionally agreed to subscribe and the company had conditionally agreed to issue convertible bonds.

Assuming that the convertible bonds in 2022 will be converted into conversion shares at the initial conversion price, the company will issue 1.9968 billion conversion shares, accounting for about 197.35% of the company's existing issued share capital. The issued share capital of the company will be expanded through the allotment and issuance of conversion shares after the conversion of convertible bonds in 2022 (assuming that no conversion shares will be allotted and issued under 2023). And the issued share capital of the company which will be expanded through the allotment and issuance of conversion shares after the conversion of convertible bonds in 2022 and convertible bonds in 2023 is about 29.73%. The total subscription amount of HK $99.84 million for 2022 convertible bonds will be offset by the respective outstanding principal amounts of the 2014 convertible bonds held by the relevant subscribers and maturing on June 24, 2022.

Assuming that the convertible bonds in 2023 will be converted into conversion shares at the initial conversion price, the company will issue 3.708 billion conversion shares, accounting for about 366.47% of the company's existing issued share capital. The issued share capital of the company will be expanded through the allotment and issuance of conversion shares after the conversion of convertible bonds in 2023 (assuming that no conversion shares will be allotted and issued under 2022 convertible bonds). And approximately 55.21% of the issued share capital of the company which will be expanded through the allotment and issue of conversion shares after the conversion of the convertible bonds in 2022 and the convertible bonds in 2023. The total subscription amount of HK $185.4 million for 2023 convertible bonds will be offset by the outstanding principal amounts of the 2015 convertible bonds held by the relevant subscribers and maturing on February 5, 2023.