RISECOMM GP (01679) entered into a loan capitalization agreement and a distribution agreement to repay debts.

RISECOMM GP (01679) announced that on May 27, 2026, the company entered into a loan capitalization agreement with GEOS, Haihua, Lianjia, Mr. Ning Jun, and Ms. Guo Lei, intending to issue a total of approximately 69.817 million capitalization shares at a price of HK$0.46 per share to the subscribers, as well as convertible bonds of approximately HK$128 million, which can be converted into a total of approximately 279 million shares at a price of HK$0.46 per share. Upon completion of the loan capitalization, all liabilities under the loan agreement will be considered fully paid, settled, and discharged. The loan capitalization price of HK$0.46 represents a discount of approximately 11.54% from the closing price of HK$0.52 per share on the Stock Exchange of Hong Kong on May 27, 2026. On May 27, 2026 (after the trading hours of the Stock Exchange), the company entered into a placement agreement with the placement agent, intending to place up to approximately 85.8696 million placement shares at a price of HK$0.46 per share, with an expected net amount of approximately HK$39 million, all of which will be used to repay the FXQ loan and the CL loan. As of the date of this announcement, the total outstanding principal and interest under the loan agreement with the subscribers amounts to approximately RMB 139.1 million, which the company does not have sufficient financial resources to fully repay. The NJ loan matured in March 2026, while the GL loan, Haihua loan, and GEOS loan will mature within the next year in September 2026, December 2026, and September 2026, respectively, and the company is unlikely to have sufficient funds to repay these loans in a timely manner.