Green Leaf Pharmaceutical plans to issue 1.2 billion yuan in convertible bonds, raising 1.371 billion Hong Kong dollars

On July 28, 2022, Lvye Pharmaceutical (02186.HK), a Hong Kong stock market, announced that on July 27, 2022, the company and the subscribers set up a subscription agreement with the subscribers Xinye Biomedical Holdings Co., Ltd. According to the subscription agreement, (including) the company has already agreed to issue it to the subscriber, and the subscriber has the conditions to agree to the subscription of corporate bonds with a amount of RMB 1.2 billion in Hong Kong dollars, but must abide by several conditions contained in the subscription agreement.

In addition, the company has granted options to subscribers to subscribe to the issue bonds with an equivalent of RMB 300 million. The addition of bonds will be issued in accordance with the same terms and conditions of issuing corporate bonds. The additional options can be exercised within 30 business days after the subscriber date.

Bonds can be converted to conversion shares in accordance with terms and conditions. Assuming that the bonds are converted at a preliminary conversion price of 3.50 Hong Kong dollars per share, and other shares are no longer issued and based on reference exchange rates, the bonds will be converted to up to 497,442,858 shares, accounting for about 14.01%and about 14.01%and about the company's issuing date. After the company's issuance of the company's distribution and conversion shares, the company has expanded 12.29%of the issued share capital.

The initial conversion price converted HK $ 3.50 per share, compared with the shares on July 26, 2022 (the final trading day before the subscription agreement was established) at the market price of HK $ 2.50%per share at the Stock Exchange's office; On July 26th of the year (including this day), the average price of the market price closed at the Stock Exchange at the last five consecutive trading days at the last five consecutive trading days was about 41.0%per share of HK $ 2.482.

Assuming that the additional options have not been exercised, the net amount of bond income (after deducting the relevant expenses and the reference exchange rate) is estimated to be approximately HK $ 1.371 billion. Based on the preliminary conversion price, the net issuance price of the shares per share is about 3.45 Hong Kong dollars. Assuming that the additional options are exercised, the net amount of bond income (deducting relevant expenses and reference exchange rates) is estimated to be approximately HK $ 1.714 billion, which is equivalent to the conversion price per share calculated at the preliminary conversion price of about 3.45 Hong Kong dollars.

The company plans to use the net amount of bonds to use the net amount of bonds as general enterprise purposes.

- END -