Gelonghui, January 18, 丨 Xinda Holdings (08471.HK) announced that the placement was completed on January 18, 2024. According to the terms and conditions of the placement agreement, the placement agent successfully placed a total of 100 million shares to seven independent undertakers at the placement price of HK$0.08 per share, which is equivalent to (i) 11.76% of the company's issued share capital immediately before the placement; and (ii) the expanded company's share capital which was expanded after allocating and issuing 100 million shares on the announcement date.

The total and net proceeds from the placement are expected to be HK$8 million and approximately HK$7.7 million respectively. It is anticipated that (i) approximately HK$6.9 million will be used to develop, sell and produce functional textile products, of which (a) approximately HK$3.1 million will be used to expand the production of functional textiles, including renting and setting up a plant for the production of functional textiles, and recruiting staff for the development and production of functional textiles; (b) approximately HK$2.3 million will be used to purchase machinery for the manufacture and processing of functional textiles; and (c) approximately HK$1.5 million will be used to purchase raw materials and semi-finished products for further processing of the Group's production plants; and (ii) approximately HK$800,000 will be used to fund the general operation of the company.