China Uptown (02330) announced that the company proposes to offer shares at a subscription price of HK$0.15 per share held on the record date to raise approximately HK$91.6 million (before deducting professional fees and other related expenses) by issuing up to 611 million shares to eligible shareholders (assuming that the company's issued share capital did not change on or before the record date). The subscription price is approximately 31.8% off of HK$0.22 per share from the closing price of the shares reported on the Stock Exchange on the last trading day.
On April 8, 2024, the company entered into a placement agreement with the placement agent. The placing agent has agreed to induce the undertaker to subscribe for unsubscribed shares on a best-effort basis in accordance with the special authorization.
Assuming that all shares are subscribed, it is usually around HK$89.3 million. Approximately 51.74% will be used to settle the long-term construction costs of the second Maoming project in 2024 and beyond, trade and other payments to the main contractor and other contractual liabilities. Approximately 25.76% will be used to repay the Group's loan liabilities. Approximately 13.44% is intended to be used as security deposit for raw sugar trade and food supply chain investment to support raw sugar trade. Approximately 9.07% is intended to be used as the Group's general working capital.