EPI (Holdings) Limited Announces Major Rights Issue: Key Details and Investor Impact

Key Highlights of the Rights Issue

• Issue Structure: EPI (Holdings) Limited (“the Company”) is launching a Rights Issue, offering
  two (2) Rights Shares for every one (1) existing Share held by qualifying shareholders as of the Record Date,
  set at Wednesday, 18 March 2026.
• Subscription Price: The Rights Shares are offered at HK\$0.16 per Rights Share, payable in full on acceptance.
• Acceptance Deadline: Shareholders must lodge the provisional allotment letter (PAL) and pay the subscription monies
  by no later than 4:00 p.m. on Thursday, 2 April 2026. Late or incomplete submissions will result in forfeiture of rights.
• Listing and Trading: The Rights Shares (in both nil-paid and fully-paid forms) are expected to be listed and
  traded on the Stock Exchange of Hong Kong, subject to compliance and approvals.
• Shareholder Entitlements: Fully paid Rights Shares will rank pari passu with existing shares, entitling holders
  to all future dividends and distributions declared after the date of allotment.
• Excess Application: Qualifying shareholders can apply for excess Rights Shares, covering unsold entitlements,
  fractions, and unsubscribed shares, by submitting an Excess Application Form (EAF) with a separate payment.
• Potential Price Impact: The Rights Issue represents a substantial potential increase in the Company’s share capital,
  which may have a dilutive effect on share value if not fully taken up.

Important Information for Shareholders

• Dealing Risks: Shares have traded on an ex-rights basis from Tuesday, 10 March 2026.
  Nil-paid Rights Shares will be traded from Monday, 23 March 2026 to Monday, 30 March 2026.
  Any trading in these periods carries the risk that the Rights Issue may not become unconditional or may not proceed.
• Conditions and Underwriting: The Rights Issue is conditional on certain requirements set out in the prospectus,
  and the Underwriter has the right to terminate the agreement in specific adverse circumstances (such as material adverse changes,
  regulatory changes, market disruptions, or force majeure events). If the Underwriting Agreement is terminated, the Rights Issue
  will not proceed and refunds will be made.
• Splitting and Transfer: Shareholders can split or transfer their rights by surrendering the PAL for new denominations
  or by completing the transfer and registration forms. Both splitting and transfer are subject to strict deadlines and Hong Kong stamp duty.
• Fractional Entitlements: The Company will not issue fractional Rights Shares. Entitlements will be rounded down,
  and unsold fractions will be aggregated and sold for the Company’s benefit. Unsold fractions may be available for excess application.
• Refunds and Certificates: Share certificates for fully-paid Rights Shares and refund cheques (if the issue is terminated)
  are expected to be sent by Wednesday, 15 April 2026.
• Settlement: All dealings and settlements will be managed through the Central Clearing and Settlement System (CCASS),
  subject to relevant rules and procedures.
• Legal and Regulatory Compliance: The Rights Issue is only offered in Hong Kong. Shareholders outside Hong Kong are
  responsible for compliance with local laws and regulations.
• Bad Weather Contingency: If a typhoon signal 8 or above, black rainstorm, or “extreme conditions” is in effect in
  Hong Kong during the acceptance deadline, the deadline will be extended as per the specified procedures.

Potential Price Sensitive Information and Share Value Impact

• Major Dilution: The Rights Issue is on a 2-for-1 basis, which could lead to significant dilution for shareholders
  who do not participate. This is a critical factor that may affect the share price, especially if the market perceives the issue as
  a sign of capital need or lack of confidence in the Company’s cash flow.
• Underwriter Termination Risk: If the Underwriter exercises its right to terminate the agreement due to market events,
  regulatory changes, or breaches by the Company, the Rights Issue will be cancelled, which may cause volatility in the share price.
• Excess Application Opportunity: Shareholders who wish to increase their stake may benefit from applying for excess
  Rights Shares, potentially acquiring additional shares at a discounted price.
• Market Trading: The listing and trading of nil-paid and fully-paid Rights Shares provide opportunities and risks
  for short-term trading, but are also subject to possible cancellation if the Rights Issue fails.

Key Dates for Investors

• Record Date: Wednesday, 18 March 2026
• Nil-Paid Rights Shares Trading Period: Monday, 23 March 2026 to Monday, 30 March 2026
• Latest Time for Acceptance and Payment: 4:00 p.m., Thursday, 2 April 2026
• Expected Date for Issue of Rights Shares and Refunds: On or before Wednesday, 15 April 2026

Action Items for Shareholders

1. Review your provisional allotment carefully and decide whether or not to take up the Rights Shares.
2. Ensure timely submission of the PAL and payment to avoid forfeiture of your rights.
3. Consider the impact of not taking up your rights, including potential dilution of your holding.
4. Seek professional advice if you are unsure about the implications or procedures.
5. Monitor Company announcements for any updates on the progress or changes to the Rights Issue.

Disclaimer: This report is for informational purposes only and does not constitute investment advice.
Investors should read the full prospectus and consult their professional advisers before making any investment decisions.
The information contained herein is based on publicly available documents and may be subject to change. The Company’s
share price may be volatile due to the Rights Issue and associated risks.

View EPI (HOLDINGS) Historical chart here