Zhitong Financial APP News, Chuneng Holdings (08430) issued an announcement involving the consolidation of every 20 issued and unissued existing shares of HK $0.01each into one consolidated share of HK $0.20 each.
As at the date of this announcement, the authorised share capital of the Company is HK $50 million, divided into 5 billion existing shares of HK $0.01each, of which 834 million existing shares have been issued and fully paid up or credited as fully paid. Assuming that no further shares will be issued or repurchased between the date of this announcement and the date of the EGM, immediately after the share consolidation takes effect but prior to the completion of the rights issue, the authorised share capital of the Company will be HK $50 million, divided into 250 million Consolidated shares of HK $0.20 each, of which the issued Consolidated shares (fully paid up or credited as fully paid) will be 41.7088 million shares.
The Board recommends that the number of shares traded on the Stock Exchange be changed from 5000 shares to 10000 Consolidated shares after the merger takes effect.
The Board recommends that, upon the effective effect of, among other things, the share consolidation and the alteration of each lot, the rights issue shall be made at the subscription price of HK $0.26 per rights share on the basis of 3 rights shares for every one Consolidated share held on the record date, the total proceeds (before expenses) were raised by issuing 125 million rights shares to eligible shareholders.
If fully subscribed, it is estimated that the net proceeds (after deducting the costs and expenses of the relevant rights issue) will be approximately HK $31.4 million (assuming that no new shares have been issued and shares repurchased by the Company on or before the record date). The company intends to use the net proceeds from the rights issue to cover rental expenses and management fees under its existing lease commitments; to pay the salaries of group employees; and the working capital of its existing business.