Bonny Hldg (01906.HK) announced on June 19 that the company plans to raise a maximum of about 7.35 million Hong Kong dollars through a rights issue, issuing no more than 300 million shares with a subscription price of HK$0.245 per share. Eligible shareholders holding four (4) existing shares at the close of business on the record date will be entitled to one (1) share of rights offering shares.

The estimated net proceeds from the rights issue will not exceed about 7.21 million Hong Kong dollars. The company plans to use the net proceeds from the rights issue (i) approximately 54.1 million Hong Kong dollars (75.0% of the net proceeds) for general operating capital of the group, including but not limited to employee costs and supplier costs; (ii) about 12.3 million Hong Kong dollars (17.0% of the net proceeds) for the purchase of necessary equipment to upgrade and replace outdated or inadequate equipment; and (iii) about 5.7 million Hong Kong dollars (8.0% of the net proceeds) for R&D work aimed at creating new products and establishing new production lines to support such innovation.

The board of directors recommends changing the minimum trading unit from 5,000 shares to 10,000 shares, effective from 9:00 am on August 7, 2024.