China Assurance Finance Group Limited (SEHK:8090) announced that it has entered into a subscription agreement for a private placement of zero coupon direct unsecured unsubordinated redeemable convertible notes with new investor UDM Group for gross proceeds of HKD 140,400,000 on October 7, 2018. The notes will be convertible into common shares of the company at an initial conversion price of HKD 1.50 per share, subject to adjustment for subdivision or consolidation of shares. The notes will have maturity of three years. Upon conversion, the company will issue 93,600,000 shares representing approximately 5.29% of the issued share capital of the company as at the date of the transaction and approximately 5.03% of the issued share capital of the company as enlarged by the allotment and issue of the conversion shares. The company will receive net proceeds of approximately HKD 131,700,000. The company will pay 6% of the proceeds raised to Alkabir Limited as finder’s fee in the transaction.