Great World Company Holdings Ltd announced that it has entered into a subscription agreement with eight subscribers to issue convertible notes for the gross proceeds of HKD 31, 950,000 on June 23, 2023. The transaction will include participation from new individual investor, LU Min for HKD 10,000,000, BAO Jiangsheng for HKD 6,000,000, WANG Minli for HKD 4,000,000, CAO Xue for HKD 4,000,000, LI Suxiang for HKD 2,000,000, TANG Jinquan for HKD 2,000,000, WAN Shuqin for HKD 2,000,000, and WANG Liang for HKD 1,950,000. The notes bear zero coupon rate and matures after 36 months from the date of issuance.

The conversion price shall be HKD 1 per conversion share. Based on the initial conversion price and assuming full conversion of the convertible notes at the initial conversion price, the convertible notes will be convertible into 31,950,000 conversion shares, representing approximately 9.67% of the total number of issued shares of 330,271,600 shares as at the date of this announcement and approximately 8.82% of the enlarged total number of issued shares of 362,221,600 shares immediately after full conversion of the convertible notes, assuming no other change in the issued share capital of the company other than the conversion shares after the date of this announcement and conversion period from beginning on, and including, the date of issuance of the convertible notes and ending on, and before the maturity date. Completion of the subscription agreements will take place on the third business day after the last condition precedent is satisfied or waived other than any condition precedent which is expressed to be fulfilled on or as at the date of completion, but subject to the fulfilment or waiver of such condition precedent, or such other date as the parties may agree in writing.

The company shall issue the convertible notes to the subscribers at completion of the subscription agreements. subject to and in compliance with the terms and conditions of the convertible notes, the noteholders shall be entitled to convert the whole or any portion of the convertible notes into conversion shares to be issued by the company and listed and traded on GEM at the election of the noteholder at any time during the conversion period at the conversion price. The noteholder(s) may not redeem the convertible note(s) before the maturity date unless an event of default occurs and the noteholder(s) lodge(s) a notice of repayment in accordance with the terms and conditions giving notice to the company that the convertible note(s) is(are) due and payable.