Kangda Food (00834) announced that on June 25, 2024, the company entered into a placement agreement with the placement agent...
Kangda Food (00834) announced that on June 25, 2024, the company entered into a placement agreement with the placement agent. The placement agent conditionally agreed to act as the company's agent and use their best efforts to encourage no less than six subscribers (who, together with their ultimate beneficial owners and concerted parties, must be independent third parties) to subscribe for up to 86,589,600 shares of placement shares at the placing price of HKD 0.25 per share. The placement shares represent approximately 16.67% of the enlarged issued share capital of the company. The placing price of HKD 0.25 per share represents a premium of approximately 25% over the closing price of HKD 0.2 per share as at June 25, 2024.
Assuming full subscription of the placement shares, the expected gross proceeds from the placing will be approximately HKD 216 million, while the expected net proceeds (after deducting the placement commission and other related expenses and professional fees of the placement) will be approximately HKD 215 million, representing a net issue price of approximately HKD 0.249 per placing share.
The company intends to use the net proceeds from the placing for general working capital purposes. The directors believe that the placing represents an opportunity to raise additional funds to support the business development and operation of the group, including but not limited to the implementation of the group's business projects, consolidating the financial position of the group and broadening the shareholder base of the company, and therefore can enhance the liquidity of the shares.