On June 13, 2024, Kyj Medical (00648) announced that the company entered into a loan capitalization agreement with a subscriber, according to which the company conditionally agrees to issue loan capitalization shares and convertible notes to settle the subscriber's loan. The completion of the loan capitalization agreement depends on (including) the conversion of loans under the restructuring agreement.
Upon completion of the loan capitalization, the subscriber agreed to waive the accumulated interest on the loan. In addition, the subscriber also agreed that from the date of approval of the loan capitalization agreement by a special shareholders' meeting, it will provide the company with an additional loan of up to HKD 10 million (additional loan), which the company can withdraw before December 31, 2024. The additional loan is unsecured, interest-free, and must be repaid on or before December 31, 2025, and does not carry any share conversion rights.
The subscriber agrees to waive the accumulated interest on the subscriber's loan after the completion of the loan capitalization. In addition, the subscriber also agrees that from the date of approval of the loan capitalization agreement by a special general meeting of shareholders, it will provide the company with an additional loan of up to HKD 10 million, which the company can withdraw by December 31, 2024. The additional loan is unsecured, interest-free, and must be repaid by December 31, 2025, without any share conversion rights.
The total amount and net amount of the funds obtained from the loan capitalization are HKD 15 million and HKD 14.8 million, respectively. The company has/plans to use the net proceeds to pay for the company and administrative expenses related to the company's daily operations, resumption of trading, and planned costs; and as operating capital for the medical and health business.
Zhao Guangyou owns Smart Noble Holdings Limited entirely, which is the subscriber.