Envision Greenwise (HKG:1783) agreed to a share placement and convertible bond issue to raise total net proceeds of about HK$1.08 billion, according to a Tuesday Hong Kong bourse filing.

The company will use about 90% of the proceeds, or HK$969.9 million, to fund its previously announced acquisition of a cloud computing and data center services provider in China.

The remaining will be used for working capital and general corporate purposes.

The firm will place 117.9 million shares at HK$4.66 apiece, with net proceeds of about HK$538.2 million. It will also issue $70 million of convertible bonds, equivalent to about HK$548.9 million, with net proceeds of about HK$539.5 million.

The convertible bonds carry a 5% annual interest rate and have an initial conversion price of HK$5.13 per share.

Shares of the firm were down more than 7% in recent trading.