FANTASIA and TFISF signed a restructuring agreement, estimating a loss of 1.4 billion RMB

FANTASIA (01777.HK) announced that it has entered into a restructuring agreement with TF SECURITIES (601161.SZ) wholly-owned subsidiary TFISF, agreeing on a price of USD 118 million. Accordingly, an independent third party, Splendid Fortune Enterprise, will acquire COLOUR LIFE (01778.HK) 21.97% equity, approximately 408 million shares, at a price of RMB 0.087 per share, representing a discount of 48.82% compared to its last trading day (2nd). The proceeds of approximately USD 4.53 million will be allocated by TFISF; TFISF will transfer 185 million shares of COLOUR LIFE to designated entities, with the share value of approximately USD 2.06 million also being deducted from the company's risk exposure to TFISF. As a result, the group is expected to record a net loss of RMB 1.409 billion.

Upon completion, the company's shareholding in COLOUR LIFE will decrease from the current 780 million shares to 185 million shares, accounting for 9.98% of its equity. The outstanding debt payable to TFISF will be transferred to the company's subsidiary Sky Ease, resulting in new debt of nearly USD 112 million, with a term of six years and an annual interest rate of 3%, payable in kind