Ta Yang Group Holdings Limited announced that it has entered into a subscription agreement for the issuance of convertible bond for gross proceeds of HKD 39,200,000 on April 3, 2023. The transaction will include participation from new investor China Xinhai Group Limited for HKD 19,600,000 and 8.33% stake and Beijing Xingxiang Technology Co., Limited for HKD 19,600,000 and 8.33% stake. The convertible bond will bear interest rate of 10% per annum and will mature on the third anniversary of the date of issuer of the convertible bonds.

The convertible bonds may not be repaid or redeemed by the bond holders before the maturity date in any event. The bonds will be issued in the minimum denomination of HKD 100,000. The bonds are convertible at an initial conversion price of HKD 0.15 per conversion shares for total of 261,333,333 shares of the company.

The subscription agreement is subject to and conditional upon the listing committee of the Stock Exchange shall have granted the permission to deal in the conversion shares to be issued upon exercise of the conversion rights of the convertible bonds.