Quantgroup (HKG:2685) agreed to raise net proceeds of about HK$59.7 million through a subscription of new shares by Fortune Financial Products, a unit of GoFintech Quantum Innovation (HKG:0290), according to a Hong Kong bourse filing Friday.

The company will issue 4.6 million new shares at HK$13.05 each, representing about 0.89% of its existing issued share capital.

The subscription price represents a nearly 15% discount to the last closing price and about a 1.3% discount to the five-day average closing price.

Quantgroup said it will use net proceeds to procure and commercialize smart hardware, fund research and development of physical AI base models, and allocate the remaining to general working capital.

Shares of the firm were down over 10% in Friday afternoon trade.