Gelonghui Group (03893.HK) announced that on March 22, 2024, the company entered into a placement agreement with the placement agent. According to this, the placement agent conditionally agreed to use the company's placement agent to cause no less than six (6) undertakers (they and their ultimate beneficial owners (if any) to be independent third parties) to subscribe for up to 25.92 million shares at the placement price of HK$0.26 per placement share. Placed shares will be distributed and issued in accordance with a general mandate.

The maximum number of shares placed under placement matters is equivalent to approximately 16.67% of the issued share capital after being expanded through full allotment and issuance of the placed shares. The placement price is HK$0.26 per share, which is approximately 10.34% off the closing price of HK$0.29 per share as reported on the date of the placement agreement; assuming all of the placed shares are fully placed, the total proceeds from the placement will be approximately HK$6.74 million, while the net proceeds from the placement transaction (after deducting the placement commission and other expenses relating to the placement) will be approximately HK$6.52 million, equivalent to the net placement price of HK$0.252 per share. The directors intend to use the net proceeds to pay for the subcontract expenses of the Group's interior solutions projects.