Zhang Li International (01693) plans to issue approximately 29.588,700 capitalized shares to offset HK$68.659 million debt

Zhitong Finance App News, Zhang Li International (01693) announced that on December 31, 2025, the company (as issuer) entered into a capitalization agreement with the trustee KP Lee Chambers (as the subscriber) to issue approximately 29.5887 million capitalized shares to the trustee under special authorization at HK$2.320 per capitalized share to settle the outstanding and redeemable secured loan bonds relating to BGMC Corporation's debts. The subscription amount payable by the subscriber under the capitalization agreement is approximately HK$68.659 million, which will be repaid by fully offsetting the outstanding and redeemable secured loan bonds owed by BGMC Corporation to the relevant independent redeemable secured loan bondholders. Capitalized shares are equivalent to (i) approximately 74.74% of the Company's issued share capital at the date of this announcement; and (ii) approximately 42.77% of the Company's issued share capital expanded by allocating and issuing capitalized shares.

This capitalization stems from a debt restructuring implemented in 2022. BGMC Corporation, a subsidiary of the company, issued redeemable secured loan bonds, which were supposed to be redeemed before June 30, 2025, and then extended twice until December 31, 2025. As of the date of this announcement, BGMC Corporation owed relevant independent redeemable secured loan bondholders relating to outstanding and redeemable secured loan bonds, amounting to approximately HK$68.6459 million.