FangDD Issues $34.3 Million Convertible Note for Growth

FangDD's Strategic Convertible Note Issuance

Fangdd Network Group Ltd. (NASDAQ: DUO), a leading property technology company based in China, has announced an exciting development in its financial strategy. The firm is set to issue a convertible promissory note amounting to US$34,320,000 to further bolster its operations and business initiatives.

Purpose of the Convertible Note

The purpose of this note issuance is to fulfill specific payment obligations stemming from an asset purchase agreement with an investor, signed recently. This strategic move showcases FangDD's commitment to expanding its asset base, which is essential for maintaining competitive advantages in the dynamic real estate sector.

Details on the Note Issuance

The note will mature 364 days post-issuance and is structured to bear no interest throughout its term. This gives the company a favorable position as it is convertible into Class A ordinary shares at a fixed conversion price. Should the note not be converted before maturity, it will automatically become Class A shares, offering a potential upward trajectory for investors.

Investor Rights and Privileges

In a bid to ensure a balanced corporate structure after the note's conversion, FangDD has entered into a share subscription agreement. This deal includes ZX INTERNATIONAL LTD, led by Mr. Xi Zeng, who is the chairman and CEO of FangDD. As a part of this agreement, FangDD plans to sell up to 12,731 Class C ordinary shares under specific conditions that align with investor needs.

Regulatory Compliance and Exemptions

This issuance is crucial as it remains exempt from the registration requirements under the Securities Act. FangDD is complying with essential regulations which permit this process, thus creating a secure pathway for the engagement of its investors without undergoing extensive public offering protocols.

FangDD’s Market Position

FangDD Network Group Ltd. stands at the forefront of revolutionizing real estate transactions in China. With a focus on digitizing services through advanced technologies like AI, cloud computing, and big data, the company is redefining the customer experience and interaction in property transactions.

Innovative Tools and Solutions

The company's suite of SaaS tools empowers real estate professionals to operate efficiently. From enhancing property listings to streamlining client communications, FangDD is committed to driving growth through innovation and technology. This convertible note will enable them to invest further in developing these tools, ensuring they stay ahead in the market.

Looking Forward

As FangDD forges ahead with these financial maneuvers, stakeholders can anticipate a strengthened market position and enhanced service offerings. The convertible note is not just a funding mechanism but a strategic instrument that demonstrates the company's long-term vision and adaptability in a rapidly changing environment.

Contacting FangDD

For investors or potential customers seeking more information on this initiative, FangDD’s Investor Relations contact is Ms. Linda Li, who serves as the Director of the Capital Markets Department. She can be reached at +86-0755-2699-8968, or via email at ir@fangdd.com.

Frequently Asked Questions

What is the total amount of the convertible note issued by FangDD?

The convertible note amount issued by FangDD is US$34,320,000.

What conditions must be met for the convertible note to be exercised?

The note issuance is subject to standard closing conditions as per the agreement with the investor.

Who is the CEO of FangDD Network Group Ltd.?

Mr. Xi Zeng serves as the chairman of the board and CEO of FangDD Network Group Ltd.

What technological elements does FangDD incorporate into its services?

FangDD utilizes AI, big data, and cloud computing to enhance real estate transaction efficiency.

How can potential investors reach FangDD for inquiries?

Potential investors can contact Ms. Linda Li at FangDD through phone or email for any inquiries regarding investments.

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