New Sparkleroll (00970) announced that on July 19, 2024, the company and the subscribers respectively entered into two subscription agreements. The subscribers conditionally agreed to subscribe and the company conditionally agreed to allocate and issue a total of 74.8794 million subscription shares at a subscription price of HKD0.64 per share.
The subscription shares represent about 15.97% of the total number of issued shares after the completion of the relevant issue and allotment of the subscription shares. The subscription price of HKD 0.64 per subscription share represents a discount of approximately 18.99% to the closing price of HKD 0.79 per share as quoted on the Stock Exchange of Hong Kong on July 19.
According to the announcement, the net proceeds from the subscription will be approximately HKD46.4 million. The net price per share of the subscription share is approximately HKD0.62. The company intends to use approximately HKD8 million of the net proceeds from the subscription for litigation expenses, approximately HKD25.4 million for potential investments when opportunities arise, and approximately HKD13 million for general operating capital of the group.