Highest Performances Holdings Inc. (NASDAQ

HPH) Secures a Share Purchase Agreement from GEM Global Yield LLC SCS (“GEM”) for an Investment of up to US$500 Million

GUANGZHOU, China, April 16, 2024 (GLOBE NEWSWIRE) -- Highest Performances Holdings Inc. (NASDAQ: HPH) (“HPH” or the “Company”), today announced that it has signed a share purchase agreement (the “Agreement”) with GEM Global Yield LLC SCS (“GEM”), a Luxembourg-based private alternative investment group. Under the Agreement, HPH has the option to issue and sell up to a number of ordinary shares (as represented by and delivered as American depositary shares) with an aggregate value of US$500,000,000 (the “Aggregate Limit”). Subject to the terms and conditions of the Agreement, HPH may increase the Aggregate Limit up to US$1,000,000,000 at a later date by delivering prior written notice to GEM. The funds will be used to fuel the Company's AI development and expansion efforts on a global scale.

During the three years from the date of signing the Agreement (the “Investment Period”), HPH will control the timing and maximum amount of the drawdown under this facility and has no minimum drawdown obligation. HPH has the option to issue shares to GEM at its own discretion within the Investment Period. HPH has agreed to pay a commitment fee to GEM equal to 1.8% of the Aggregate Limit, in either cash, from the proceeds of the drawdowns, or in ordinary shares. Simultaneously, the Company and GEM entered into a selling agent agreement with Wilson-Davis & Company which will act as investment banker and as selling agent for GEM and will receive a fee of 0.2 % of the Aggregate Limit.

HPH plans to utilize any proceeds from drawdowns for investing in projects related to artificial intelligence, robotics hardware and software, intellectual property related to sports, mergers and acquisitions or strategic alliance that can add value to the Company, and general corporate and working capital needs of the Company.

About GEM

Global Emerging Markets ("GEM") is a $3.4 billion, alternative investment group with offices in Paris, New York and Nassau, Bahamas. GEM manages a diverse set of investment vehicles focused on emerging markets and has completed over 580 transactions in 70 countries. Each investment vehicle has a different degree of operational control, risk-adjusted return, and liquidity profile. The family of funds and investment vehicles provide GEM and its partners with exposure to: Small-Mid Cap Management Buyouts, Private Investments in Public Equities and select venture investments.