According to Zhitong Finance App, Huitao Group (08238) announced that on May 31, 2024, the company signed a placement agreement with the placement agent. The company intends to submit it for subscription, and the placement agent has agreed (as the company's agent) to push no less than six undertakers to subscribe up to about 124.4 million shares at a price of not less than HK$0.056 per share during the placement period.

Assuming that there are no further changes in the issued shares prior to completion, the maximum number of shares placed under the placement of 124.4 million shares is equivalent to about 20.00% of the existing issued shares at the date of this announcement; and about 16.67% of the total number of issued shares after the expansion of the placement matters. The total face value of the shares to be placed under the placement items will be HK$2,4883 million. The placement price of HK$0.056 is approximately 18.84% off of the closing price of HK$0.069 per share as reported on the date of the placement agreement; and the average closing price of the shares as reported on the Stock Exchange on the last five consecutive trading days immediately before the date of the placement agreement is approximately 19.31% off of HK$0.0694 per share.

Placed shares will be distributed and issued in accordance with a general mandate. The company will apply to the GEM Listing Committee for approval to list and trade the placement of shares.

The maximum amount of proceeds from the placement will be approximately HK$6.97 million. The maximum net proceeds from the placement will be approximately HK$6.48 million and will be used as expenses for current business development.