Zhitong Finance App News, Magnesium Technology (00601) announced that the company proposes to supply shares at the subscription price of HK$0.110 per share of the offered share on the record date, and raise (before expenses) not less than HK$32.59 million (assuming that there is no change in the number of shares issued on or before the record date) but not more than HK$33.24 million (assuming that all unexercised convertible bond shares have been exercised or converted for every 2 existing shares held on or before the record date, but not including MX convertible bonds). The subscription price was discounted by approximately 43.88% from the closing price of HK$0.196 per share as reported on the Stock Exchange on the last trading day. Eligible shareholders are entitled to apply for shares in excess of their respective quotas under the share offering.

The maximum net raise from the share offering is HK$29.78 million. About 30% will be used to fund the upgrading of production facilities in Tengxiang, Xinjiang, 40% will be mainly used to promote the growth of the Group's existing magnesium business, and the remaining 30% will be used to support ongoing administrative and operating expenses.