Summary by Moomoo AI
On 14 May 2024, Zheng Mei Group announced that it has entered into a distribution agreement with Matrices Securities Limited, an allocation of up to 160,000,000 new shares at a price of HK$0.138 per share, equivalent to 20% of the Company's existing issued share capital and approximately 16.67% after expansion. The divestiture is expected to raise a maximum of HK$22.08 million, net of approximately HK$20.72 million, net of which will be used for the Group's general operating capital. The completion of the sale is expected to take place on the third business day after all prerequisites have been met, but it is still possible that it will not take place. The Board considers that this move contributes to increasing the liquidity of the shares and consolidating the financial position and considers that the distribution terms are fair and reasonable and in the overall interests of the company and shareholders.