Gelonghui May 17 丨 Hongshengchang Resources (01850.HK) announced that all conditions set out in the placement agreement have been fulfilled, and the completion was realized on May 16, 2024. The placement agent has successfully placed a total of 28.8 million shares to no less than six undertakers at a placement price of HK$0.67 per share in accordance with the terms and conditions of the placement agreement. The 28.8 million shares placed are equivalent to approximately 20.0% of the Company's current issued share capital and approximately 16.67% of the Company's issued share capital as expanded by the placed shares immediately prior to completion of the announcement date.

The total proceeds from the placement were approximately HK$19.296 million, while the net proceeds from the placement were approximately HK$18.517 million. The Company intends to use approximately HK$3 million of the net proceeds from the placement for repayment of shareholders' loans, approximately HK$11 million for business expansion, and the remainder for the Group's general working capital.