Wai Chun Bio-Technology (HKG:0660) agreed to issue HK$15 million of convertible bonds to Lam Ching Kui, a Tuesday filing with the Hong Kong bourse said.

The three-year bonds, which are convertible into 214,285,714 shares at HK$0.07 apiece, carry a 2% per annum interest rate.

The bonds are being issued to offset the outstanding principal amount and accrued interest under a shareholder's loan payable by the company to the subscriber.

The issue is conditional on the biotech firm's capital reorganization becoming effective and subject to shareholder approval.

Lam Ching Kui is the ultimate controlling shareholder of the company, holding 91,622,643, or 51.34%, shares in the latter personally and through his indirect interest in Chinese Success.