The Company’s BOD resolved to forfeit the subscription of AP Biosciences’ cash capital increase and distribute the rights to its shareholders

1.Date of occurrence of the event:2022/08/08
2.Company name:OBI Pharma Inc.
3.Relationship to the Company (please enter ”head office” or ”subsidiaries”):Head office
4.Reciprocal shareholding ratios:Not applicable
5.Cause of occurrence:
In accordance with related laws and regulations, to coordinate with AP Biosciences’ future plan of shareholding dispersal after IPO, to protect shareholders’ interests of the Company, and to share the business results of AP Biosciences, the Company’s Board of Directors decide to forfeit all the preemptive rights of AP Biosciences’ cash capital increase and distribute the rights to shareholders of OBI.
6.Countermeasures:None
7.Any other matters that need to be specified:
(1)AP Biosciences’ Board of Directors resolved to issue common shares through cash capital increase. The total amount of cash issuance is 16,000,000 shares, with a par value of NT$10 per share and a issue price of NT$50. The total fund raised is expected to be NT$800,000,000. Pursuant to Article 267 of the Company Act, 10% of the total new shares, 1,600,000 shares, are reserved for employees who are eligible. Other 90% of the total new shares, 14,400,000 shares, will be subscribed by original shareholders based on the shareholding ratio stated on the register of shareholders on the reference date.
(2)In accordance with related laws and regulations, to coordinate with AP Biosciences’ future plan of shareholding dispersal after IPO, to protect shareholders’ interests of the Company, and to share the business results of AP Biosciences, the Company’s Board of Directors decide to forfeit all the preemptive rights of AP Biosciences’ cash capital increase and distribute the rights to shareholders of OBI. Based on the shareholding ratio stated on the register of shareholders on the book closure date, each thousand shares of OBI bears the subscription rights for 34.3016 shares of AP Biosciences. The Chairman of AP Biosciences is authorized to contact specific persons for purchase at the issue price for shares unsubscripted by shareholders or fractional shares.
(3)The Company’s shareholding ratios of AP Biosciences will decrease from 54.62% to 41.12% after the forfeiture of preemptive rights of AP Biosciences’ cash capital increase.
(4)The Chairman of the Company is authorized to decide any other matters not covered herein related to the forfeiture of subscription of AP Biosciences’ cash capital increase, which will be sent to 2023 Annual Shareholders’ Meeting for ratification.