STERLING GP (01825) announced that on July 30, 2024, the company and the placing agent entered into a placing agreement. The placing agent (as the company's agent) conditionally agreed to use its best efforts to encourage no less than six placing persons (and their ultimate beneficial owners must be independent third parties) to subscribe for up to 48 million placing shares at a placing price of HK$0.11 per share.
The placing shares are equivalent to approximately 16.7% of the total issued shares after the placing and issue of the placing shares (assuming that the total number of issued shares has not changed from the date of this announcement to the completion date, except for the placing shares issued). The placing price is HK$0.11 per placing share, representing a discount of approximately 1.8% compared to the closing price of HK$0.112 per share on the Stock Exchange of Hong Kong on July 30.
Assuming that all the placing shares are fully placed out, the net proceeds of the placing (after deducting the placing commission and other related expenses (including (among others) professional fees) relating to the placing) are expected to be approximately HK$5.12 million, equivalent to a net issue price of approximately HK$0.1067 per placing share. The company intends to use all the net proceeds from the placing for general working capital purposes to finance its ongoing development and its existing and/or future business expansion.
