MicroAlgo Inc. plans to issue additional new shares at an offering price of $0.8 per share.

Rhea-AI Summary

MicroAlgo Inc (NASDAQ: MLGO) has announced plans to issue new shares at $0.8 per share to fulfill a debt obligation. This decision follows a $20 million convertible bond purchase agreement signed with creditors on October 7, 2024, with a 360-day maturity period.

The creditors have now requested share issuance based on the agreement's terms, which allow for conversion into common shares at 70% of the lowest closing market price during the 60 trading days before conversion. This share issuance is specifically intended for debt repayment under the convertible bond agreement terms.

Positive

• None.

Negative

• Significant shareholder dilution due to new share issuance at $0.8 per share
• Conversion price at 70% of lowest closing price indicates substantial discount to market value
• $20 million debt obligation being converted to equity

SHENZHEN, March 24, 2025 (GLOBE NEWSWIRE) -- MicroAlgo Inc. plans to issue additional new shares at an offering price of $0.8 per share.

Shenzhen, China, March. 24, 2025 – MicroAlgo Inc. (NASDAQ: MLGO), (the “Company”or "MicroAlgo"), today announced the plan to issue more new shares. Considering that MicroAlgo Inc. entered into a convertible bond purchase agreement with creditors on October 7, 2024, with a total amount of US$20 million. These bonds have a maturity period of 360 days. According to the convertible bond purchase agreement, the bonds are convertible into common shares at a conversion price equal to 70% of the lowest closing market price during the 60 trading days preceding the conversion request.
MicroAlgo Inc. has received notice from the creditors under this US$20 million convertible bond purchase agreement, requesting the company to issue new shares at $ 0.8 per share to repay the debt in accordance with the agreement terms. The company plans to fulfill the relevant clauses of this US$20 million convertible bond purchase agreement and will issue new shares at $ 0.8 per share for debt repayment.
This serves as a risk disclosure in accordance with the Form 6-K filing submitted to the U.S. Securities and Exchange Commission (SEC) on October 9, 2024.

About MicroAlgo Inc.
MicroAlgo Inc. (the “MicroAlgo”), a Cayman Islands exempted company, is dedicated to the development and application of bespoke central processing algorithms. MicroAlgo provides comprehensive solutions to customers by integrating central processing algorithms with software or hardware, or both, thereby helping them to increase the number of customers, improve end-user satisfaction, achieve direct cost savings, reduce power consumption, and achieve technical goals. The range of MicroAlgo'sservices includes algorithm optimization, accelerating computing power without the need for hardware upgrades, lightweight data processing, and data intelligence services. MicroAlgo's ability to efficiently deliver software and hardware optimization to customers through bespoke central processing algorithms serves as a driving force for MicroAlgo's long-term development.

Forward-Looking Statements
This press release contains statements that may constitute "forward-looking statements." Forward-looking statements are subject to numerous conditions, many of which are beyond the control of MicroAlgo, including those set forth in the Risk Factors section of MicroAlgo's periodic reports on Forms 10-K and 8-K filed with the SEC. Copies are available on the SEC's website, www.sec.gov. Words such as "expect,""estimate,""project,""budget,""forecast,""anticipate,""intend,""plan,""may,""will,""could,""should,""believes,""predicts,""potential,""continue," and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, without limitation, MicroAlgo's expectations with respect to future performance and anticipated financial impacts of the business transaction.
MicroAlgo undertakes no obligation to update these statements for revisions or changes after the date of this release, except as may be required by law.

Contact
MicroAlgo Inc.
Investor Relations
Email: ir@microalgor.com

FAQ

What is the price per share for MLGO's new share issuance in March 2025?

MicroAlgo (MLGO) plans to issue new shares at $0.8 per share.

How much is the total value of MLGO's convertible bond agreement from October 2024?

The convertible bond purchase agreement signed on October 7, 2024, totals US$20 million.

What is the conversion price formula for MLGO's convertible bonds?

The conversion price equals 70% of the lowest closing market price during the 60 trading days preceding the conversion request.

When do MLGO's convertible bonds from October 2024 mature?

The convertible bonds have a maturity period of 360 days from October 7, 2024.