China Hongguang (08646.HK) announced on May 17th that it was announced at 2022 On May 17, 2008, the company worked with Bright Global (Hold about 50.25% of the issued share capital of the company) entered into a share subscription agreement, under which the company conditionally agreed to allot and issue, and Bright Global conditionally agreed to subscribe for 99 million subscription shares in accordance with the terms of the share subscription agreement, accounting for approximately 24.81 per cent of the enlarged company's shares. The subscription price per share is HK $0.4, a discount of about 13.04% from the closing price of HK $0.46 on May 17.
The total proceeds from the share subscription will be about HK $39.6 million. The total net proceeds from the share subscription will be about HK $39.25 million. The company intends to use (a) 60% of the net proceeds from the share subscription to maintain and operate its existing business (including the purchase of raw materials, upgrades and production equipment to improve efficiency and quality and to repay loans); (b) 30% for potential acquisitions and the development of new business; and (c) 10% for the general working capital of the group.