Gelonghui, January 26, 丨 Changyou Alliance (01039.HK) announced that on January 26, 2024, the company signed a subscription agreement with the subscriber Century Investment (Holding) Limited (the controlling shareholder of the company) to issue 2024 convertible bonds with a total principal amount of HK$126 million. The initial exchange price is HK$0.42 per share (approximately 342% premium over the closing price of HK$0.095 per share as reported on the Stock Exchange on the last trading day), which can be adjusted as contained in the 2024 convertible bonds.

Assuming full exercise, a total of 300 million new shares can be allotted and issued to subscribers subject to certain restrictions, which is equivalent to approximately 16.57% of the total number of issued shares and an expansion of the total number of issued shares by about 14.21% through allotment and issuance of redeemed shares.

Since the outstanding principal amount under the 2020 convertible bonds will be offset by all amounts payable by the subscribers for the issue price, the company will not collect the net proceeds from issuing the 2024 convertible bonds.