Immunotech Biopharm Ltd (Stock Code: 6978) has disclosed plans to issue new convertible bonds in a principal amount of RMB270 million, alongside a RMB30 million note, in a move to settle the company’s existing 2023 convertible bonds maturing on 20 February 2026.

According to the announcement dated 9 February 2026, the proposed RMB270 million convertible bonds bear a 7.8% annual simple interest rate and carry a maturity of 364 days from issuance. The initial conversion price is set at HK$2.92 (approximately RMB2.62) per share, potentially leading to a maximum allotment of 102,880,787 new shares, equivalent to around 16.66% of the existing share capital. The bonds are secured by mortgages on certain assets and shares, with a coverage ratio requirement of over 130%. Any conversion shares to be issued will be under the existing general mandate, and an application will be made to list these shares on the Stock Exchange.

The supplementary RMB30 million note shares similar terms and also matures in 364 days with a 7.8% simple interest rate. Both the new convertible bonds and note will serve as full settlement for the principal of the 2023 convertible bonds once the transaction completes, conditional upon various approvals and procedural requirements.

The company states that without sufficient resources to redeem the maturing 2023 convertible bonds outright, the proposed issuance is intended to address repayment obligations while securing investor buy-in for an extended funding arrangement. Shareholders and investors are advised to note that the transaction remains subject to final closing conditions. If the arrangement does not proceed, the 2023 convertible bonds will remain valid until their original maturity date.