Gelonghui Group (02147.HK) announced on May 14, 2024, that on May 14, 2024, the company entered into a placement agreement with the placement agent. According to this, the company appointed an placement agent as its agent and subject to the terms of the placement agreement on a best-effort basis, to induce no less than six undertakers to subscribe for up to 160 million shares at a price of HK$0.138 per placement share. Placed shares will be distributed and issued in accordance with a general mandate.

The price of HK$0.138 per placed share was equivalent to HK$0.145 per share on May 14, 2024 (the last trading day). The closing price of HK$0.145 per share was discounted by about 4.83%; 160 million placed shares were equivalent to approximately 16.67% of the company's issued share capital after being expanded through allotment and issuance of placed shares. It is anticipated that the net proceeds from the placement transaction (after deducting the placement commission payable to the placing agent and other expenses arising from the placement) will be approximately HK$20.72 million. The Company intends to use the net proceeds from the placement as the Group's general working capital.