CSTONE PHARMA-B (02616) has entered into a placement agreement with a placing agent. The company conditionally agreed to place a total of 118 million new shares to no fewer than six placees at a price of HK$8.97 per share through the placing agent. The placing price of HK$8.97 per share was determined after arm's length negotiations between the company and the placing agent. This represents a discount of approximately 6.95% compared to the closing price of HK$9.64 per share on the Stock Exchange on April 13, 2026, the last full trading day immediately preceding the date of the placement agreement.

The maximum of 118 million placing shares will represent approximately 7.99% of the company's existing issued share capital as of the date of this announcement and approximately 7.40% of the company's enlarged issued share capital immediately after the placement, assuming no change in the issued share capital from the date of this announcement until the completion date of the placement. The placing shares will be allotted and issued under the general mandate and do not require any shareholders' approval.

Assuming all 118 million placing shares are fully subscribed, the gross proceeds from the placement will be approximately HK$1.058 billion. After deducting placing commissions and other related expenses and professional fees, the estimated net proceeds will be approximately HK$1.053 billion. The net proceeds are intended to be used for the following purposes: (i) 90% will be allocated to further research and development related to assets in the group's "Pipeline 2.0," particularly CS2009 (a potential first-in-class/best-in-class next-generation immuno-oncology backbone, a trispecific molecule targeting PD-1, VEGFA, and CTLA-4 currently in Phase II development), CS5001 (a potential best-in-class ROR1 ADC), and other assets in the preclinical or IND preparation stage; and (ii) the remaining net proceeds will be used for other general corporate purposes as appropriate.

The board of directors believes that the placement will broaden the company's shareholder and capital base. Furthermore, the net proceeds will strengthen the group's financial position for future development. Therefore, the board considers the placement to be in the overall interests of the company and its shareholders.