Gelonghui, April 18 | Mythical World (00582.HK) announced that the board of directors proposed a share capital restructuring, which will involve the following matters: (a) share consolidation, which will involve the following matters: (a) share capital reduction, where the company's issued share capital will be reduced. The method is (a) by canceling any fragmented consolidated shares in the total number of consolidated shares in the company's issued share capital after the share merger is rounded down to the nearest whole number; and (b) Cancellation of HK$0.09 of the company's paid-up share capital, resulting in each share being issued The face value of the consolidated shares was reduced from HK$0.10 to HK$0.01; and (c) all accounts received as a result of the reduction in share capital were transferred to the company's paid surplus account in accordance with the Companies Act to be used in full to offset the company's cumulative losses, or applied by the board of directors in any other manner permitted from time to time by the Company Rules and all applicable laws of Bermuda without further authorization from shareholders.
The board of directors proposed changing each trading unit on the Stock Exchange from 1,200 existing shares to 6,000 adjusted shares after the share capital restructuring takes effect.
The board of directors recommended that after the share capital restructuring and change of the trading unit of each lot take effect, the shares will be offered at a subscription price of HK$0.26 per share of the offered shares at the subscription price of HK$0.26 per share to raise up to HK$263.7 million (before deducting expenses) by issuing up to 1,014 billion shares of offered shares.
The estimated net proceeds from the share offering will be approximately HK$258.6 million, of which (i) approximately HK$100 million is intended for maintenance, renovation and facility upgrades at Jeju Mythology World, including but not limited to the construction of water supply projects required for the development of Jeju Mythical World; (ii) approximately HK$73.0 million is intended to develop the Group's resort business and gaming business, such as service enhancement, supply chain management, human resources development, and sales and marketing activities; (iii) approximately HK$50.0 million for interest expenses; and (iv) the remaining HK$35.6 million is used for the company's general operating capital such as employee costs, utility costs, and other general operating expenses. If the share subscription is insufficient and the size of the share offering is reduced, the net proceeds are expected to be used in the order described above.
Furthermore, the company has applied for the resumption of stock trading on the Stock Exchange at 9:00 a.m. on April 19, 2024.