According to Zhitong Finance App, Ruicheng China Media (01640) issued an announcement. On May 24, 2024, the company entered into a placement agreement with the placement agent. The company had already agreed to issue, and the placement agent had agreed (as the company's agent) to do their best to induce no less than six undertakers (they and their ultimate beneficial owners must be independent third parties) to subscribe for up to 80 million shares according to the placement price of HK$0.50 per share.

Placed shares account for approximately 16.67% of the company's issued share capital after being allocated and expanded by issuing placed shares. The placement price of HK$0.50 per share is approximately 13.79% off the closing price of HK$0.58 per share on May 24, 2024.

It is anticipated that the maximum total proceeds and net proceeds (after deducting placement commissions and other costs and expenses related to the placement) will be approximately HK$40 million and HK$39.4 million respectively. As far as the net proceeds from the placement are concerned, the net proceeds from the placement are about HK$23.6 million to be used to repay bank loans; and the balance of the net proceeds is intended to be used for the Group's general working capital, including the Group's staff costs, rent expenses and other office expenses.

The Board of Directors (including independent non-executive directors) believes that the placement will strengthen the Group's financial position by reducing the amount of bank loans and corresponding financing costs, thereby reducing the Group's balance to liability ratio. Furthermore, the Board of Directors also believes that placement matters can provide the Group with higher liquidity and operational flexibility by increasing the Group's working capital without increasing the Group's interest burden; and affect the Group's financial position and liquidity risk through equity financing. Finally, the placement is also a good opportunity to expand the shareholder base.