On July 18, Guolong News announced that MarCol Digital Technology (01942.HK) has entered into a subscription agreement with the placement agent, under which the company intends to issue up to 0.155 billion shares of subscription shares. The subscription shares represent (i) approximately 20.00% of the issued share capital of the company as of the date of this announcement; and (ii) approximately 16.67% of the issued share capital of the company after the completion of the distribution and the issuance of the subscription shares. The subscription price is HKD 0.88 per share, which represents a discount of approximately 19.27% to the closing market price per share of HKD 1.09 on the date of the subscription agreement announced on the Stock Exchange.
The estimated maximum net proceeds from the subscription items are approximately HKD 0.135 billion. The directors intend to allocate the net proceeds as follows: (i) approximately 62.91% of the net proceeds will be used for expanding and developing the group's insurance and financial technology related business; (ii) approximately 10% of the net proceeds will be used for the development and operation of intelligent data centers; (iii) approximately 10% of the net proceeds will be used for potential mergers, acquisitions and strategic investments that can supplement or enhance the group's existing business and have strategic significance for its long-term goals; and (iv) approximately 17.09% of the net proceeds will be used for general working capital and general corporate purposes of the group.
The group is currently in discussions with related experts and contractors to obtain a construction quote for the platform. The platform aims to promote the intermediary of insurance products through insurance agents to customers, and to expand the group's market to a wider range of insurance customers through business partners. The plan is expected to be launched in the second half of 2024.