INSILICO (03696) has announced that on August 27, 2026, following the close of trading, it entered into a subscription agreement with the managers. Under the terms of this agreement, and subject to the satisfaction of certain conditions contained therein, the company has agreed to issue, and the managers have agreed to subscribe for, or procure subscribers to subscribe for, zero-coupon convertible bonds with an aggregate principal amount of $305 million.

The initial conversion price is set at HK$58.07 per share, representing a premium of approximately 23.5% over the closing price of HK$47.02 per share as quoted on the Stock Exchange of Hong Kong on August 27, 2026, which is also the date of the subscription agreement.

Assuming full conversion of the bonds at the initial conversion price of HK$58.07 per share, the bonds would be convertible into approximately 41.17 million shares. This figure represents roughly 7.07% of the company's issued share capital as of August 27, 2026, which was the last practicable date prior to the publication of this announcement, and approximately 6.60% of the company's issued share capital as enlarged by the full conversion of the bonds.

Upon completion of the bond issuance, the total gross proceeds from the subscription of the bonds will amount to approximately $305 million. After deducting the managers' commissions and other estimated expenses payable in connection with the offering, the net proceeds from the subscription are expected to be approximately $302 million.

The company intends to allocate these proceeds in the following manner: (a) approximately 40% of the net proceeds will be used to fund clinical trials for self-developed drug candidates; (b) approximately 30% of the net proceeds will be directed toward expanding the group's research and development team; (c) approximately 15% of the net proceeds will support the development and training of cutting-edge scientific SOTA foundational models; and (d) the remaining approximately 15% of the net proceeds will be applied to supplement working capital and for other corporate purposes.