Zitong Financial App NewsDigital Kingdom (00547)It was announced that on 11 December 2020, the company entered into a subscription agreement with the subscriber HLEE Finance S. subscription .r.l for the subscription. According to the subscription Agreement, the Company has conditionally agreed to allot and issue 6.815 billion shares to subscribers at a subscription price of HK $0.050 per subscription share, which is about 12.28% off the closing price of HK $0.057 per share on December 11. subscription shares account for about 16.67% of the enlarged issued share capital
The net proceeds from the subscription will be approximately HK $341 million and will be used for the establishment of the joint venture, the Group's media and entertainment division and general working capital.
In addition, on 11 December 2020, the company entered into a joint venture formation agreement with subscribers relating to the subscription of shares in the joint venture by Digital Kingdom subsidiaries and subscriber subsidiaries, and to regulate the rights and obligations of Digital Kingdom subsidiaries and subscriber subsidiaries as shareholders of the joint venture. After the digital kingdom subsidiary and the subscriber subsidiary have completed the subscription of the shares of the joint venture, the digital kingdom subsidiary and the subscriber subsidiary will own 60% and 40% of the joint venture respectively, and the joint venture will become an indirect non-wholly-owned subsidiary of the company.
The company and the subscribers share a common vision of the opportunities and development potential available to the group in the European market. The subscription and joint venture formation agreements provide the company with the opportunity to raise funds from and co-invest with subscribers whose main business is investment in the global media industry. in this way, we can make good use of the Group's expertise and experience in virtual reality production, virtual reality technology services and virtual people technology to develop the European market.