Gelonghui, March 4, 丨 Shinhwa World (00582.HK) announced that on March 1, 2024, the company, the subscriber Resplendence Investment Development Limited and the guarantor entered into a subscription agreement. According to this, the company conditionally agreed to allocate and issue, and the subscriber conditionally agreed to subscribe for a total of 845 million subscription shares at the subscription price of HK$0.034 per share, accounting for approximately 20% of the company's issued share capital; and the company expanded due to the allocation and issuance of subscribed shares after completion The issued share capital is approximately 16.67%.

The total proceeds from the subscription process and the estimated net proceeds will be HK$28,738,500 and approximately HK$28,500,000 respectively. The Company intends to use the net proceeds from the subscription as follows: (i) approximately HK$14,000,000 to upgrade, repair and maintain the existing buildings, equipment and facilities at Jeju Mythical World (a comprehensive leisure and entertainment resort owned and operated by the Group on Jeju Island, South Korea); (ii) approximately HK$10,000,000 for interest expenses; (iii) approximately HK$4,500,000 for sales and marketing promotion and advertising expenses; and (iv) the remaining amount (if any) for general operating capital.

The board of directors believes that the subscription matter provides the company with an opportunity to expand its shareholder base, enhance the Group's core business Jeju Shinhwa World facilities, and enhance the Group's financial position.

Furthermore, the company has applied for the resumption of stock trading on the Stock Exchange starting at 9:00 a.m. on March 5, 2024.