Dragon Rise GP (06829) announced that the board of directors intends to propose a recommendation to shareholders to carry out share consolidation, which involves combining each...
Zhongtong Finance APP News, Dragon Rise GP (06829) announced that the board of directors intends to propose a recommendation to shareholders for share consolidation, which involves combining each 10 shares with a par value of HKD 0.01, whether issued or unissued, into 1 share with a par value of HKD 0.10. Currently, the shares are traded in units of 10,000 shares per lot on the Stock Exchange of Hong Kong. After the share consolidation takes effect, the units of trading for the consolidated shares will remain at 10,000 shares per lot.
In addition, the company proposes to offer for subscription 1 share of subscription shares for every 1 consolidated share held by eligible shareholders on the record date, at a subscription price of HKD 0.20 per subscription share, to raise a maximum aggregate amount of approximately HKD 28.8 million (before deducting expenses) through the issuance of 0.144 billion subscription shares (assuming that there is no change in the issued share capital of the company on or before the record date). The subscription is only available to eligible shareholders and will not be extended to ineligible shareholders.
The net proceeds from the subscription is approximately HKD 27.7 million, with 70% for preliminary costs of ongoing construction projects, 15% for partial repayment of bank loans with principal payments due in January 2025, and the remaining balance for general working capital of the group.