Gelonghui, May 22, China (08623.HK) announced that on May 22, 2024, the Company and Subscriber A, Subscriber B, Subscriber C, Subscriber D, Subscriber E, and Subscriber F respectively entered into subscription agreement A, subscription agreement B, subscription agreement C, subscription agreement D, subscription agreement E, and subscription agreement F. According to this, the company conditionally agreed to allocate and distribute shares, and all relevant subscribers conditionally agreed to subscribe for shares separately. The subscription price for each subscribed share is HK$0.02.

The subscription price for each subscription share is HK$0.02, which is approximately 4.76% off from the closing price of HK$0.021 per share as reported on the date of the subscription agreement (May 22); the total of 184 million subscribed shares under the subscription is equivalent to 20% of the total number of shares issued on the date of publication, and the total number of issued shares expanded through allocation and issuance of subscription shares is approximately 16.67% (assuming there will be no change in the company's issued share capital between the date of publication and the date of completion of the subscription).

The net proceeds after deducting related expenses are expected to be approximately HK$3.29 million. The Group intends to use approximately 60% of the net proceeds for general working capital purposes, while the remaining 40% will be used to repay bank loans and shareholder loans.