NETDRAGON (00777) proposes to place up to 60 million warrants.

NETDRAGON (00777) announces that on September 17, 2026, the Company and the placing agent entered into a warrant placing agreement in respect of the placing. The placing agent has agreed, on a best-efforts basis, to place up to 60 million warrants to placees, which carry the right to subscribe for up to 60 million subscription shares at an initial subscription price of HK$8.28 per subscription share (subject to adjustment). Such placees and their ultimate beneficial owners (if applicable) must be independent third parties. Each warrant carries the right to subscribe for one subscription share. Assuming the subscription rights attached to the 60 million warrants are fully exercised at the initial subscription price of HK$8.28 per subscription share and there is no other change in the Company's issued share capital, a total of up to 60 million subscription shares will be allotted and issued, representing approximately 11.29% of the Company's existing issued share capital as at the date of this announcement (including 5,162,300 treasury shares); approximately 11.40% of the Company's existing issued share capital as at the date of this announcement (excluding 5,162,300 treasury shares); approximately 10.15% of the Company's issued share capital as enlarged by the allotment and issue of 60 million subscription shares (including 5,162,300 treasury shares); and approximately 10.24% of the Company's issued share capital as enlarged by the allotment and issue of 60 million subscription shares (excluding 5,162,300 treasury shares). Assuming the maximum number of warrants is placed at the issue price, the gross proceeds and net proceeds from the issue of the warrants will be approximately HK$6 million and HK$4.2 million, respectively. The net proceeds from the issue of the warrants are expected to be used as general working capital of the Company, including payment of the Company's salaries, rental expenses and other office expenses. Assuming the subscription rights attached to the maximum number of warrants are fully exercised at the initial subscription price, it is expected that additional gross proceeds of up to approximately HK$496.8 million will be raised. The total net proceeds from the placing and the allotment and issue of the subscription shares will be up to approximately HK$501 million, which are expected to be used as general working capital of the Group, including developing the Group's AI business and for general corporate purposes.