According to Zhitong Finance App News, Weilu Technology Co., Ltd. (01196) announced that after the trading session on November 11, 2026, the Company and Merrill Lynch Holdings entered into a loan capitalization agreement. According to this, the two parties have agreed conditionally that the capitalized loan amount of approximately HK$2,547 billion will be settled by the Company from issuing 11.576 billion convertible preferred shares to Merrill Lynch at an issue price of HK$0.22 per convertible preferred share.
As of June 30, 2026, the total principal amount owed by the Group to Merrill Lynch Shareholder loans was approximately HK$3.1 billion. As of the date of this publication, the outstanding interest accrued on this principal amount was approximately HK$33.3 million.
According to the terms of convertible preferred shares, one convertible preferred share can be converted to one share for exchange (subject to adjustment). When all of the convertible preferred shares are converted, an equal number of 11.576 billion exchangeable shares will be issued.
To facilitate the establishment and issuance of convertible preferred shares, the Board of Directors proposed increasing the authorized share capital of the Company from HK$2 billion to 80 billion shares with a face value of HK$0.025 to HK$2.5 billion, divided into 80 billion shares with a face value of HK$0.025 per share, and 20 billion shares of convertible preferred shares with a face value of HK$0.025 per share, by adding 20 billion convertible preferred shares. The increase in authorized share capital must be approved by shareholders in an ordinary resolution at the special shareholders' meeting before it can actually be implemented.