According to the announcement from the Futu Wealth app, smart city dev (08268) announced that on August 22, 2024, the company entered into a placement agreement with the placement agent, and the company has conditionally agreed to appoint the placement agent, and the placement agent has conditionally agreed to act as the company's placement agent, to promote the placing person to subscribe for up to 48 million shares at a placing price of HKD 0.33 per share based on its best efforts. The shares will be distributed and issued under the general authorization, and will be distributed to no fewer than six placing persons.

Assuming no change in the company's issued share capital between the date of this announcement and the completion of the placement, the maximum of 48 million shares of placement shares is equivalent to approximately 16.67% of the enlarged issued share capital resulting from the placement. The placing price of HKD 0.33 per share is at a discount of approximately 16.46% compared to the closing price per share of HKD 0.395 as reported by the Stock Exchange of Hong Kong on August 22.

Assuming all placement shares are fully placed, the estimated maximum net proceeds of the placement (after deducting the commission payable to the placement agent and other costs, expenses and fees arising from the placement) is approximately HKD 15 million. The company intends to use the entire estimated net proceeds of the placement for the following purposes, all of which are expected to be utilized by March 31, 2025: approximately HKD 5 million (or approximately 33.33% of the estimated net proceeds of the placement) for the expansion of the group's lending business; approximately HKD 4 million (or approximately 26.67% of the estimated net proceeds of the placement) for the expansion of the group's securities investment business; and approximately HKD 6 million (or approximately 40.0% of the estimated net proceeds of the placement) for the group's general working capital, which will be used for employee costs, professional fees, and other operating expenses of the group; as well as exploring potential new business opportunities.