NOVAUTEK (00519) has announced that on July 24, 2026, it intends to issue convertible bonds with a total principal amount of HKD 33 million to Pangaea Investment Limited, Hui Wan Lun, CHEANG Ana, and Ruixing Investment Limited.

The convertible bonds carry an annual interest rate of 6%. The initial conversion price is set at HKD 0.18 per share (subject to adjustment), representing a premium of approximately 14.65% over the closing price of HKD 0.157 per share quoted on the Stock Exchange on the date of the subscription agreement.

Use of Proceeds

The estimated net proceeds from the subscription amount to a maximum of HKD 32.57 million. Approximately 30.7% of the funds will be allocated to the manufacturing and production of AI robots; around 24.6% will be directed toward technology research and development and the continuous iteration of products within that segment; another 24.6% will be used for related sales, marketing, and product commercialization; and the remaining balance of approximately 20.1% will be allocated to general working capital purposes for the segment, including but not limited to human resources and general administrative expenses needed for operations.