Fangdd Network announces $%M senior convertible notes offering

Fangdd Network (DUO) Group has entered into a securities purchase agreement with certain investors for the offering by the Company of senior 5% original issue discount convertible promissory notes in an aggregate principal amount of $5,000,000, Class A ordinary shares, par value $0.0005625 per share, issuable from time to time upon conversion under the Notes, and additional 164,610 Class A ordinary shares in connection with the issuance of the Notes. The Notes carry a 5% original issue discount, and have a term of nine months from the original issuance date. No interest accrues during the term of the Notes unless an event of default occurs, in which case interest will accrue at a rate of 15% per annum or, if less, the highest amount permitted by law. The Company’s obligations under these Notes rank senior to all other existing indebtedness and equity, with the Notes issued under the Purchase Agreement treated equally.