Tibet Water Resources to raise HK$297m through convertible bond placement

On September 17, 2025, Tibet Water Resources Ltd. entered into a placing agreement to issue up to HK$297,000,000 in 5% convertible bonds. These bonds, convertible at HK$0.55 per share, will facilitate the issuance of up to 540,000,000 new shares upon full conversion. The conversion price represents a 1.85% premium over the last trading day's closing price. SBI China Capital Financial Services Limited, the placing agent, will procure at least six institutional or individual placees.

The company plans to allocate 50% of the net proceeds (approximately HK$147,500,000) to refinance existing bonds due in the fourth quarter of 2025, with the remaining 50% dedicated to general working capital. The directors believe the terms are fair and reasonable, serving the best interests of the company and its shareholders. The new shares will rank pari passu with existing shares and will be listed on the Stock Exchange.

This placement is being conducted under a general mandate granted on June 30, 2025, allowing for the issuance of up to 939,989,115 shares. With no shares previously issued under this mandate, it provides sufficient capacity for the conversion shares, negating the need for further shareholder approval. The bonds bear interest at 5% per annum, payable in a lump sum on the maturity date of October 5, 2026.