RC365 Holding PLC (LSE:RCGH) said it has agreed to offer a HK$5mln (£0.52mln) convertible loan to a Hong Kong company that provides shared wireless power bank rental stations to enable phone charging in restaurants, shopping malls and hotels.
Subsidiary Regal Crown Technology has entered into the agreement with HK Easy Charge, starting with the payment of a HK$1mln loan by 31 March, 2023, with the remainder paid by 30 April, 2023.
The loan facility is convertible into ordinary shares in HK Easy Charge, which plans to list on the HK Stock Exchange.
Regal Crown has taken out a put option, granted by HK Easy Charge for HK$1 to purchase all but not part of the facility if and when HK Easy Charge's ordinary shares are listed on the Hong Kong Stock exchange by 13 March next year.
Regal Crown has entered into a deed for Chan Kwo Li to be the guarantor in the loan facility and put option, as he holds 8,400 shares, representing an 84% shareholding of HK Easy Charge.
In a statement, RC365 chief executive Michael Law said: “We are delighted to enter into this opportunity with HK Easy Charge and we strongly believe this could lead to new opportunities to collaborate together in order to provide new IT support services to customers.”