On December 20, Gelonghui reported that Jl Mag Rare-Earth (06680.HK) announced that on December 19, 2024, the company (as the issuer) entered into a placement agreement with the placement agent (i.e., DBS Asia Capital Limited), under which the placement agent has agreed to act as the company's agent and use its best efforts to facilitate subscribers to subscribe for no more than 6.7238 million placement shares according to the terms and conditions set forth in the placement agreement.

The placement shares are expected to be placed to no fewer than six subscribers. Each subscriber and their respective ultimate beneficial owners are expected to be independent third parties from the company and its connected persons. The placement shares (i.e., 6.7238 million new H shares) correspond to: (i) approximately 0.5% of the company's issued share capital as of the date of this announcement; (ii) approximately 0.497% of the issued share capital only after the completion of the placement; and (iii) approximately 0.49% of the issued share capital after the completion of the major shareholder subscription and the placement. The placement price is HKD 7.82 per placement share, representing a discount of approximately 10.2% to the closing price of HKD 8.71 per H-share reported on the last trading day on the Stock Exchange.

The placement will enhance the company's capital strength and asset scale, strengthen the company's core competitiveness and profitability, and promote the sustained rapid growth of the company's main business, providing funding support for the company to further expand and strengthen. The estimated net proceeds from the placement are expected to be approximately HKD 51.22 million. The net proceeds from the placement will be used for the procurement of raw materials, repayment of corporate debts, and other daily purposes after deducting related issuance costs.