BJ SPORTS & ENT (01803) has entered into a subscription agreement with a subscriber, following the close of trading on the Hong Kong Stock Exchange on May 11, 2026. Under the terms of the agreement, the subscriber has conditionally agreed to subscribe for, and the company has conditionally agreed to allot and issue, a total of 282 million new shares. The subscription price is set at HKD 0.073 per share.

The new shares will be issued under the company's general mandate. Assuming no change in the company's issued share capital from the date of the announcement until completion, the subscription shares will represent approximately 20.00% of the company's existing issued share capital as of the announcement date and approximately 16.67% of the company's enlarged issued share capital following the issuance.

The subscription price of HKD 0.073 represents a discount of approximately 18.89% compared to the closing price of HKD 0.09 per share on the Hong Kong Stock Exchange on May 11, 2026, the date of the subscription agreement.

The gross proceeds from the subscription are expected to be approximately HKD 20.5568 million, with net proceeds amounting to approximately HKD 20.5 million. The company intends to allocate the net proceeds as follows: HKD 15 million will be used to fund its existing lending business, HKD 3.5 million will be allocated for the expansion of overseas markets, and the remaining HKD 2 million will serve as general working capital for the group.