AOM INT'L (00381) has announced that on June 17, 2026, the company entered into a subscription agreement with the subscriber, Sheen World International Holdings Limited. Under this agreement, the company conditionally agrees to allot and issue, and the subscriber conditionally agrees to subscribe for, 300.88 million subscription shares at a price of HK$0.113 per share.

The subscription monies payable by the subscriber under the agreement, amounting to approximately HK$34 million, will be settled by offsetting the full outstanding amount of the fourth Hubei convertible bonds.

In addition to this subscription arrangement, the company has evaluated various other financing methods, including debt financing or equity financing through placements, public offerings, or rights issues. The company has approached its two main relationship banks for loan facilities. However, given the group's net current liabilities position as of December 31, 2025, and its current loss-making status, these banks have required the company to provide asset charges and joint and several guarantees from its directors.

The company has encountered difficulties in meeting these bank requirements to secure debt financing, not to mention the resulting interest costs that would be incurred. A placement would also involve a certain amount of placement commission. Furthermore, a rights issue or public offering involves lengthy approval procedures and relatively high costs.

The approval process for a rights issue or public offering is estimated to take at least two months and is expected to incur professional fees of not less than HK$1 million. The directors believe that, considering the subscriber has accepted the subscription and that this arrangement involves neither high costs nor an increase in the company's interest burden, the subscription represents the most advantageous solution.