Hybrid Kinetic Group Limited entered into the Subscription Agreement with Mr. Zhou Zuan for convertible debenture for gross proceeds of HKD 100,000,000 on May 29, 2023. The net proceeds from the subscription are estimated to be approximately HKD 99,500,000 after deducting the estimated expenses for the subscription. The shares are issued at an interest rate of 5% and conversion price of HKD 0.10 per share.

The Company may redeem the Convertible Bond before the Maturity Date by issuing a notice to the Bondholder in writing three Business Days prior to the date of redemption. The Convertible Bond may not be transferred by the Bondholder without the prior written consent of the Company.