Gelonghui, April 25 (01063.HK) announced that on April 23, 2021, the company intends to place a maximum of 580 million shares to no less than six transferees, accounting for about 38.85% of the enlarged company's shares. The allotment price is HK $0.10 per share, a discount of about 13.0 per cent to the closing price of HK $0.115 on April 23.

Assuming that the placing shares are informed of the placing, the total proceeds from the placing and the net proceeds (after deducting the placing commission and other placing expenses) will be HK $58 million and approximately HK $56.2 million respectively. In order to raise funds to further develop and operate the virtual asset trading platform, the company intends to use the net proceeds from the placement for the following purposes:: (i) about HK $18 million for the development of virtual assets trading platform network application development; (ii) about HK $11 million for the acquisition of equipment and related installation and technical support services about HK $8.1 million for cloud infrastructure and professional network management services (iv) approximately HK $8.4 million for operational and technical staff and external consultants' staff costs and consultancy fees; (v) approximately HK $2.4 million for digital and data securities services; and (vi) approximately HK $8.3 million for operating the virtual assets trading platform, including, but not limited to, the purchase of digital assets inventory and insurance.