PURAPHARM (01498) announced that on February 26, 2026, the company entered into a convertible bond subscription agreement with Protoss Global Opportunities Fund. Under the agreement, the subscriber has conditionally agreed to subscribe for, and the company has conditionally agreed to issue, convertible bonds with a principal amount of HK$20 million. The bonds can be converted into shares at a conversion price of HK$0.49 per share. The total gross proceeds and net proceeds from the bond subscription are approximately HK$20 million and HK$19.85 million, respectively. The board intends to allocate the net proceeds as follows: (i) approximately HK$10 million will be used as general working capital, including the procurement of raw herbs, employee costs, and rental expenses; (ii) around HK$5 million will be used to repay existing bank loans, aiming to reduce the group's debt-to-asset ratio and financing costs; and (iii) the remaining funds will be dedicated to expanding the group's existing business, specifically for upgrading production facilities and supporting the research and development of new concentrated Chinese medicine formula granules.