Gelonghui May 17th 丨China Hongguang (08646.HK) announced in 2022On May 17 of this year, the company and Bright Global (Holds approximately 50.25% of the company's issued share capital) A share subscription agreement was concluded. According to this, the company conditionally agreed to the allocation and issuance, and Bright Global conditionally agreed to subscribe for 99 million shares in accordance with the terms of the share subscription agreement, accounting for about 24.81% of the company's shares after the expansion. The subscription price is HK$0.4 per share, which is approximately 13.04% off the closing price of HK$0.46 on May 17.
The total amount of proceeds from share subscription transactions will total approximately HK$39.6 million. The total net proceeds from share subscription transactions will be approximately HK$39.25 million. The company intends to use (a) 60% of the net proceeds from share subscription transactions to maintain and operate existing business (including purchasing raw materials, upgrading and purchasing production equipment to improve efficiency and quality, and loan repayment); (b) 30% for potential acquisitions and developing new businesses; and (c) 10% for the Group's general working capital.