Ever Glory (SGX:ZKX) entered into subscription agreements for SG$5 million worth of convertible bonds due 2028 at an interest rate of 8%, according to a Monday filing with the Singapore Exchange.

The price of each conversion share will initially be SG$0.40 per share.

Under the agreement, up to 12,500,000 conversion shares will be allotted and issued by the company.

Proceeds from the deal will be used to fund the acquisition of a certain company or for general working capital purposes if the purchase does not push through.