ALi Corporation board approves proposed private placement of up to 40 million common shares

ALi Corporation’s board of directors resolved on May 14, 2026, to propose a private placement of common shares, with the total number not exceeding 40,000,000 shares. Subject to shareholder approval, the placement may be carried out in no more than three tranches within one year from the shareholders’ meeting resolution date, depending on market conditions and negotiations with specific investors. Eligible private placement subscribers will be limited to strategic investors that meet regulatory requirements, can help the company enhance technology, improve quality, reduce costs, increase efficiency, expand markets or strengthen working capital, and agree with the company’s business philosophy. The board plans to seek full authorization from shareholders to determine specific investors and related matters. Potential subscribers that are insiders or related parties include Universal Global Scientific Industrial-related entities such as Yuquan Intelligent Connection, Bright Crystal United, Guangyangyao Investment, Spectrum Electric, Jiuheyi Technology, Sanjiang Electric, Guangju Holdings and Alltek Technology. The private placement price will be no less than 80% of the higher benchmark price calculated from the company’s common share closing prices over the prescribed periods before the pricing date. The actual pricing date and issue price are expected to be determined by the board in accordance with regulations and negotiations with specific investors. All proceeds will be used to strengthen working capital, with expected benefits including improved competitiveness, operating efficiency and financial structure. The company said it chose a private placement instead of a public offering after considering capital market conditions, fundraising timing, feasibility, issuance costs and the need to introduce strategic investors. Independent directors expressed no objection or qualified opinion. The privately placed shares will carry the same rights and obligations as existing common shares, but in principle may not be transferred within three years from delivery under applicable law. After the three-year period, the board may apply for retroactive public issuance and listing in accordance with relevant regulations.