VENUS MEDTECH-B (HKEX: 02500) shares experienced a significant surge of over 30% before the midday break. As of the latest update, the stock was up 29.63%, trading at HK$1.75 with a turnover of HK$8.1073 million.

The sharp increase follows a company announcement. On July 1, 2026, the company, Hangzhou High-tech, and Hangzhou Yingzhiqin entered into an investment term sheet. According to this agreement, Hangzhou High-tech and Hangzhou Yingzhiqin have expressed their intention, along with other potential investors, to jointly invest in the company through potential transactions. These transactions include a potential share subscription and a potential convertible bond subscription, with the total investment amount reaching up to RMB 500 million.

Investment Details

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

Additionally, the proposed investors are expected to invest by subscribing for new convertible bonds. The conversion price for these new convertible bonds is set at 110% of the average closing price of the shares on the Stock Exchange over the 20 consecutive trading days immediately preceding the signing of the formal transaction documents. Similarly, this conversion price will not exceed HK$2.50 per share.