Shares of VENUS MEDTECH-B (ASX: 02500) surged more than 30% in morning trading. At the time of writing, the stock is up 31.85%, trading at HK$1.78 with a turnover of HK$9.0953 million.

The company has issued an announcement stating that on July 1, 2026, the company, Hangzhou High-Tech, and Hangzhou Yingzhiqin entered into an investment term sheet. According to the terms, Hangzhou High-Tech and Hangzhou Yingzhiqin have expressed their intent, along with other potential investors, to jointly invest in the company through a potential transaction. This transaction includes a potential share subscription and a potential convertible bond subscription, with a total maximum investment amount of up to RMB 500 million.

As outlined in the term sheet, the proposed investors are expected to invest in the company by subscribing for new shares. The subscription price per new share will be 100% of the average closing price of the company's shares on the Stock Exchange over the 20 consecutive trading days immediately preceding the signing of the formal transaction documents, provided that the subscription price shall not exceed HK$2.50 per share.

Furthermore, according to the investment term sheet, the proposed investors are also expected to invest by subscribing for new convertible bonds. The conversion price for the new convertible bonds will be 110% of the average closing price of the company's shares on the Stock Exchange over the 20 consecutive trading days immediately preceding the signing of the formal transaction documents, with the stipulation that the conversion price shall not exceed HK$2.50 per share.