On August 22, KWG International (02339.HK) announced that the company plans to issue up to 0.287 billion shares to qualified shareholders at a subscription price of HK$0.168 per share, a discount of approximately 13.85% from the closing price on August 21.

Assuming that the number of shares issued on or before the record date remains unchanged and all the shares to be issued through the rights issue have been fully subscribed, the total amount of funds raised from the rights issue will be approximately HK$48.2 million. The estimated net amount of funds raised from the rights issue is approximately HK$46.5 million, which will be used for the following purposes within twelve months after the completion of the rights issue: (a) 55% for working capital of the Group's production facilities in Poland and the Czech Republic (including employee salaries, purchase of raw materials, and other expenses); (b) 25% for working capital of the company's headquarters in Hong Kong (including employee salaries, rental expenses, and professional fees); and (c) 20% for working capital of the Group's technical centers in Poland and France (including salaries of engineers).