Gelonghui, Oct. 21, 丨 Chunneng Holdings (08430.HK) announced that the board of directors plans to merge shares and proposes a “20 in 1” merger of shares.

The Board recommended that the trading unit for each lot of shares traded on the Stock Exchange be changed from 5,000 shares to 10,000 consolidated shares after the share merger takes effect.

The Board recommended that, after the merger of shares and the change in the trading unit per lot take effect, the total proceeds will be raised by issuing 125 million shares to eligible shareholders by issuing 125 million shares of supply shares to eligible shareholders at a subscription price of HK$0.26 per share of the offering based on the basis of 3 shares issued for each consolidated share held on the record date.

The company intends to use the net proceeds from the stock offering to (i) cover rent expenses and management expenses under its existing lease obligations; (ii) pay the salaries of the Group's employees; and (iii) the working capital of the existing business.