E&P GLOBAL (01142) has announced that on August 27, 2026, it entered into a subscription agreement with subscriber Arena Investors, L.P. (acting for and on behalf of its managed funds) and charger Dongyuan Holdings Limited.

Under the agreement, the company conditionally agreed to issue, and the subscriber conditionally agreed to subscribe for, convertible bonds with an initial principal amount of US$10 million. This amount may be increased by up to US$0.8 million if the subscriber elects to pay all or part of the structuring fee through the issuance of additional convertible bonds.

The initial conversion price of HK$0.0945 per conversion share represents a premium of approximately 3.85% over the closing price of HK$0.091 per share as quoted on the Stock Exchange on the date of the subscription agreement.

The net proceeds from the convertible bond issuance are intended to be used as follows: (i) approximately 10% to strengthen the group's energy trading business, including trading in oil, coal, and natural gas; (ii) approximately 20% as general working capital for the group, including but not limited to employee costs, administrative expenses, and daily operating expenses; and (iii) the remaining approximately 70% for the group's development and business expansion, as well as identifying potential business and investment opportunities that align with its overall strategic planning.