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

1. MicroAlgo plans to issue new shares for $20M convertible bond agreement. 2. Bonds can be converted to shares at 70% of the lowest market price. 3. The new shares will be priced at $0.8 per share for debt repayment. 4. Risk disclosure submitted to SEC as part of compliance. 5. MicroAlgo specializes in bespoke central processing algorithms and software solutions.

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FAQ

Why Bearish?

Issuing new shares typically dilutes existing shareholder value. In the past, similar actions have led to falling stock prices for companies.

How important is it?

The announcement directly impacts stock dilution and investor sentiment. The magnitude of the convertible bond agreement indicates a significant financial maneuver.

Why Short Term?

Immediate dilution from new shares is likely to affect stock prices swiftly. Historical cases show swift reactions in markets to new share issuances.

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, /PRNewswire/ -- 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's services 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. SOURCE Microalgo.INC WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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