On June 7th, Gelunhui: Ruicheng China Media (01640.HK) announced that all conditions listed in the placement agreement have been met and finalized on June 7, 2024 according to the terms and conditions of the placement agreement. A total of 80 million shares of placement shares have been successfully allocated at a price of HKD 0.50 per share to no fewer than six underwriters by the placement agent in accordance with the terms and conditions of the placement agreement, equivalent to approximately 16.67% of the enlarged issued share capital of the company after the completion of the placement and the issuance of placement shares.

The net proceeds of the placement are approximately HKD 39.4 million, of which (i) the net proceeds of approximately HKD 23.6 million from the placement will be used to repay bank borrowings; and (ii) the balance of the net proceeds will be used for the general working capital of the group, including employee costs, rent expenses and other office expenses.