Stream Ideas Group Limited — Capital/Financing Update 2020

Jun 12, 2020

Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

Stream Ideas Group Limited 源 想 集 團 有 限 公 司

(Incorporated in the Cayman Islands with limited liability)

(Stock code: 8401)

DISCLOSEABLE TRANSACTION SUBSCRIPTION OF WEALTH MANAGEMENT PRODUCT

SUBSCRIPTION OF THE UBS BANK WEALTH MANAGEMENT PRODUCT

The Board announced that on 12 June 2020, the Company subscribed for the UBS Bank Wealth Management Product from UBS Bank in the amount of USD2 million.

IMPLICATIONS UNDER THE GEM LISTING RULES

Pursuant to the GEM Listing Rules, as the highest applicable percentage ratio (as defined under chapter 19 of the GEM Listing Rules) of the Subscription exceeds 5% but is below 25%, such transaction constitutes a discloseable transaction of the Company and shall be subject to the notification and announcement requirements but exempt from the shareholders’ approval requirement under the GEM Listing Rules.

SUBSCRIPTION OF THE UBS BANK WEALTH MANAGEMENT PRODUCT

The board of directors (the ‘‘Board’’) of Stream Ideas Group Limited (the ‘‘Company’’) is pleased to announce that on 12 June 2020, the Company has subscribed for the ‘‘UBS Manage[TM] Advanced Systematic Allocation — USD Medium’’ Wealth Management Product (‘‘UBS Bank Wealth Management Product’’) from UBS AG (‘‘UBS Bank’’) in the amount of United States Dollars (‘‘USD’’) 2 million.

The material terms of the subscription of the UBS Bank Wealth Management Product (the ‘‘Subscription’’) are set out as follows:

Date of subscription: 12 June 2020 Parties: (1) Stream Ideas Group Limited; and (2) UBS Bank Name of the wealth UBS Manage[TM] Advanced Systematic Allocation management product: — USD Medium Subscription amount: USD2 million

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Term of investment period: Not fixed, redeemable by UBS Bank upon the request of the Company at any time Investment portfolio: The UBS Bank Wealth Management Product will be invested in investment instruments (such as liquidity, bonds and equities). The portfolio does not include hedge funds, real estate and commodities. Investment objective: Appreciation of assets in the long term. Medium volatility of asset value is expected. UBS Bank will aim to limit major drawdowns in portfolio value while trying to participate in positive equity market trends. Fee: UBS Bank will charge the Company a flat fee dependent upon the size of the managed portfolio and the applicable investment strategy. The flat fee includes commissions, transactions fees, spreads and costs for investment in listed equities, listed exchange traded funds, listed exchange traded derivatives, listed warrants, bonds, notes, treasury bills, certificates of deposit, over-the-counter structured products (securities), money market certificates/notes and investment funds. The flat fee also covers custody fees and account maintenance fee/account service fee. Expected annualised rate of 5.00% investment return: Redemption: Redemption of funds or related instruments may be subject to payment of a redemption commission.

The subscription amount will be settled in cash in one lump sum.

The subscription amount was determined based on the amount of idle funds without affecting the Company’s operational liquidity.

REASONS FOR AND BENEFITS OF SUBSCRIPTION OF THE UBS BANK WEALTH MANAGEMENT PRODUCT

The daily operation of the Company and its subsidiaries (the ‘‘Group’’) in the field of provision of online advertising services has generated affluent capital reserves. Without affecting the Company’s operational liquidity, the Company utilised certain idle funds to subscribe for the UBS Bank Wealth Management Product.

The Subscription is considered to be part of the Group’s treasury management to improve the utilisation of its funds. By way of the rational and effective utilisation of such funds, it is beneficial to the Group by improving the efficiency of fund usage and bringing higher return on capital. In addition, the Company has fully considered its fund needs for daily operations and capital expenditure when purchasing the UBS Bank Wealth Management Product and determining the subscription amount. The Subscription will not affect the daily fund requirements of the Company.

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The Board is therefore of the view that the Subscription was entered into on normal commercial terms, in the ordinary course of business of the Company, the terms of the Subscription are fair and reasonable and are in the interests of the Company and the shareholders of the Company as a whole.

INFORMATION ON THE PARTIES

The Company and its subsidiaries are principally engaged in the provision of online advertising services, which consist of social viral service, engager service and mass blogging service. Its business primarily operates in Hong Kong, Taiwan, Malaysia and Singapore.

UBS Bank is an investment bank with headquarters in Switzerland. To the best of the directors’ knowledge, information and belief having made all reasonable enquiry, UBS Bank and its ultimate beneficial owners are third parties independent of the Company and connected persons of the Company.

IMPLICATIONS UNDER THE GEM LISTING RULES

Pursuant to the Rules Governing the Listing of Securities on GEM of The Stock Exchange of Hong Kong Limited (the ‘‘GEM Listing Rules’’), as the highest applicable percentage ratio (as defined under chapter 19 of the GEM Listing Rules) of the Subscription exceeds 5% but is below 25%, such transaction constitutes a discloseable transaction of the Company and shall be subject to the notification and announcement requirements but exempt from the shareholders’ approval requirement under the GEM Listing Rules.

By Order of the Board Stream Ideas Group Limited Law Ka Kin Executive Director

Hong Kong, 12 June 2020

As at the date of this announcement, the Board of Directors comprises four executive Directors, namely Ms. Cheung Lee, Mr. Law Ka Kin, Mr. Lee Wing Leung Garlos and Mr. Leung Wai Lun; and three independent non-executive Directors, namely Mr. Kwan Chi Hong, Mr. Fenn David and Mr. Ho Ho Tung Armen.

This announcement, for which the directors (the ‘‘Directors’’) of Company collectively and individually accept full responsibility, includes particulars given in compliance with the Rules Governing the Listing of Securities on GEM of The Stock Exchange of Hong Kong Limited for the purpose of giving information with regard to the Company. The Directors, having made all reasonable enquiries, confirm that to the best of their knowledge and belief, the information contained in this announcement is accurate and complete in all material respects and not misleading or deceptive, and there are no other matters the omission of which would make any statement herein or this announcement misleading.

This announcement will remain on the ‘‘Latest Listed Company Information’’ page of the GEM website at www.hkgem.com for at least 7 days from the date of its publication and on the Company’s website at www.stream-ideas.com.

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