NetDragon (00777) plans to place up to 60 million warrants

Zhitong Finance App News, NetDragon (00777) announced that on September 17, 2026, the Company entered into a warrant placement agreement with the placement agent. The placement agent has agreed to place up to 60 million warrants to the consignee according to the best effort basis. The ancillary rights can subscribe for up to 60 million subscription shares at the initial subscription price of HK$8.28 per share (subject to adjustment). Such undertakers and their ultimate beneficial owners (if applicable) must be independent third parties. Each share warrant is accompanied by the right to subscribe for one subscription share.

Assuming that the subscription rights attached to the 60 million warrants are exercised at the initial subscription price of HK$8.28 per share and that there is no other change in the Company's issued share capital, a total of up to 60 million subscribed shares will be allocated and issued, which is equivalent to approximately 11.29% of the Company's current issued share capital (including 5.1623 million treasury shares) at the date of this announcement; the Company's existing issued share capital (excluding 5.1623 million treasury shares) is approximately 11.40%; the Company allotted and issued 60 million subscribed shares and expanded the issued shares Share capital ( Including 5.1623 million treasury shares) about 10.15%; and the issued share capital (excluding 5.1623 million treasured shares) of the Company after expanding the allocation and issuance of 60 million subscribed shares is approximately 10.24%.

Assuming that the highest number of warrants are sold at the issue price, the total proceeds and net proceeds from issuing the warrants will be approximately HK$6 million and HK$4.2 million respectively. The net proceeds from the issuance of the warrants are expected to be used as the Company's general working capital, including payment of the Company's salaries, rent expenses and other office expenses.

Assuming that the highest number of subscription rights attached to the warrants are fully exercised at the initial subscription price, it is estimated that the total additional proceeds will be raised up to about HK$496.8 million.

The maximum net proceeds from placement matters and the allocation and issuance of subscribed shares is approximately HK$501 million, which is expected to be used as the Group's general working capital, including the development of the Group's AI business and general corporate purposes.