Zhitong Finance App News, Global Printing House (08448) issued an announcement. The board of directors proposed a share merger. The issued and unissued existing shares with a face value of HK$0.01 per 5 shares will be merged into 1 consolidated share with a face value of HK$0.05. Stock consolidation is subject to approval by shareholders by voting at the special shareholders' meeting before it can be implemented and will take effect two business days after the special shareholders' meeting.

The board of directors proposed increasing the authorized share capital of the company from HK$20 million (divided into 2 billion existing shares) to HK$200 million (divided into 20 billion existing shares (which will be 4 billion consolidated shares after the share merger takes effect)). After shareholders pass an ordinary resolution approving the increase in authorized share capital at the special shareholders' meeting, the increase in authorized share capital will take effect on the date of the special shareholders' meeting.

Pending the increase in authorized share capital and the share merger comes into effect, the board of directors proposes to supply shares at a subscription price of HK$0.115 per share of the offered share based on the basis of 3 shares being issued for every 2 consolidated shares held on the record date, and to raise up to about HK$34.43 million (before deducting expenses) through the issuance of 299.4 million shares offered. Assuming there is no change in the number of shares issued on or before the record date, the estimated net proceeds from the offering of shares (after deducting all estimated expenses) would be approximately HK$32.81 million.

The Group intends to use the net proceeds from the stock offering to repay trade and other payables and accruals; repay shareholders' loans; and general working capital.

According to the underwriting agreement, New Metro will underwrite up to 163.6 million shares. This amount is the number of shares to be issued based on the number of shares offered to be issued minus the 136 million shares to be subscribed by New Metro, Mr. Tsang and Mr. Zhao in accordance with an irrevocable commitment.