What are the terms and expiry dates of the Class A Ordinary Share Purchase Warrants (A and B Warrants), and how might they impact future capital raising or share price volatility?

Warrant terms – The private‑placement includes two detachable‑type purchase‑warrants (the “A Warrants” and the “B Warrants”). Both are entitled to purchase up to 24,349,315 Class A Ordinary Shares each at the same $0.73 per‑share subscription price used for the straight‑share portion of the offering. The detachable warrants are exercisable at any time on or after the closing of the placement and expire on 27 August 2029, i.e. a four‑year life‑span typical for HK‑listed share‑purchase warrants.

Capital‑raising implications – Because the warrants are “prefunded” (they may be settled in cash or by delivering newly‑issued shares) they give Skyline a flexible, staged‑equity pipeline. If the market price of the Class A shares trades above $0.73, investors can exercise the warrants, providing the company with additional, essentially “free” equity capital without a further dilution‑premium. Management can therefore tap the warrant pool as a contingency source of funding for expansion, acquisition or balance‑sheet strengthening, especially if the share price stays well above the strike for an extended period.

Potential impact on price volatility – The four‑year expiry creates a latent supply of up to 48.7 million shares that could be released into the market at any time before August 2029. When the price approaches or exceeds the $0.73 strike, market participants will price in the probability of warrant exercise, leading to compressing premiums on the underlying stock and heightened short‑term volatility around key price levels (e.g., $0.80‑$0.90). Anticipation of large‑scale exercise in the 2027–2029 window may also stimulate a forward‑looking volatility premium in options and futures on Skyline’s shares. Traders should watch for upward pressure on the share price as the warrant‑exercise window narrows, and consider positioning ahead of potential dilution events—e.g., scaling into the stock on pull‑backs below $0.73 while maintaining a short‑vega stance to capture the volatility boost as the expiry date approaches.