QUANTGROUP (ASX: 02685) has entered into a subscription agreement with a designated investor, as detailed in a recent company announcement.

The agreement, dated July 9, 2026, is with Fortune Financial Products Limited, a wholly-owned subsidiary of Guofu Quantum (00290.HK).

Under the terms, the investor has conditionally agreed to subscribe for a total of approximately 4.6 million new shares.

This share issuance represents about 0.89% of the company's existing issued share capital as of the announcement date.

The subscription price has been set at HK$13.05 per share.

This price represents a discount of approximately 14.98% compared to the closing price of HK$15.35 per share on the Hong Kong Stock Exchange on the date of the agreement.

The gross proceeds from this private placement are expected to be around HK$60 million.

After deducting related expenses, the net proceeds are anticipated to be approximately HK$59.7 million.

The company has outlined its intended use for the net funds raised from this placement.

Approximately 40% is allocated for the procurement and commercial expansion of smart hardware.

Another 30% is designated for research and development expenditures related to its physical AI foundation model.

The remaining 30% will be used for the company's general working capital requirements.