China Anchu Energy Storage Group Limited entered into the Subscription Agreements with the subscribers to issue 8% Convertible Bonds for the gross principal amount of HKD 26,205,300 on May 22, 2023 The transaction will include participation from individual investors Tao for HKD 22,779,900 and Song for HKD 3,425,400. The transaction has been approved by the shareholders of the company. The bonds bear 8% interest rate and will mature on December 31, 2025. The transaction is expected to close on June 15, 2023. The initial Conversion Price of HKD 0.66 per Share. Unless previously redeemed, converted or purchased and cancelled, the Company shall redeem all the outstanding Convertible Bonds held by the Subscribers on the Maturity Date at an amount equal to the aggregate principal amount of the outstanding Convertible Bonds and any accrued but unpaid interest on such outstanding Convertible Bonds. The Convertible Bonds are freely transferable, provided that no transfer of the Convertible Bonds to any connected person of the Company shall neither be made without prior written notice to and agreed by the Company. The Company may voluntarily redeem all or any part of the Convertible Bonds at any time following the Issue Date and prior to the Maturity Date by repaying the Subscribers the principal amount of all or part of the Convertible Bond to be redeemed as may be determined by the Company together with the accrued but unpaid interest after serving at least seven (7) Business Days' prior written notice on the Subscribers with the total amount proposed to be redeemed from the Subscribers specified therein. Based on the initial Conversion Price of HKD 0.66 per Conversion Share and assuming there is no
other change in the issued share capital of the Company between now and the full conversion of the Convertible Bonds, 39,705,000 Conversion Shares will be allotted and issued by the Company upon exercise in full of the conversion rights attaching to the Convertible Bonds, representing: (a) approximately 1.79% of the existing issued share capital of the Company; and (b) approximately 1.76% of the issued share capital of the Company as enlarged by the issue of the 39,705,000 Conversion Shares.