Gelonghui June 29th 丨Qiantang Holdings (01466.HK) announced that on June 29, 2023, the buyer (Eminent Affluent Limited, forA wholly-owned subsidiary of the company), sellerKetto Inform LimitedIn the end, the beneficial owner and the guarantor enter into a sales agreement. According to this, the seller has conditions to agree to the sale and the buyer has conditions to agree to the acquisition of the sales shares (equivalent to the target companyTonnett Julis Holdings Limited(Total issued share capital), of which the cost is HK$42 million, of which (i) HK$10.5 million will be paid by the company through the distribution and issuance of costing shares; and (ii) HK$31.5 million will be paid by the company through the issuance of convertible bonds.
Cost shares include 39.9954 million shares, equivalent to (i) about 6.25% of the company's issued share capital as of the date of announcement; (ii) about 5.88% of the company's issued share capital after distribution and expansion of issuance of costing shares; and (iii) about 5.00% of the company's issued share capital after distribution and issuance of price shares and the expanded share exchange rights attached to convertible bonds. ,
After all convertible bonds have been converted, 119,863,013 convertible shares will be issued, which is equivalent to approximately 18.75% of the company's issued share capital as of the announcement date and about 15.00% of the company's issued share capital after distribution and issuance of the shares distributed and issued and expanded due to the exercise of all of the exchange rights attached to the convertible bonds.
The company's management believes that the skincare market has huge potential. The group's pearl products and the target group's skincare products can carry out product sharing activities, and one of the synergistic effects includes processing pearls as one of their skincare ingredients. The directors believe that the acquisition provides an opportunity for the Group to vertically expand its existing business and horizontally expand its range of consumer products for women (from pearls and jewelry to skincare products) by using the Group's existing pearl products as raw materials for skincare products.