On October 21st, Gelonhui announced that on October 21, 2024, the company entered into a placing agreement with Likou Securities Limited (as placing agent). Pursuant to the agreement, the company has appointed the placing agent as its agent to use its best efforts to procure not less than six placees (unless otherwise agreed by the company) to subscribe for up to approximately 0.272 billion shares of placing shares at a placing price of not less than 0.146 Hong Kong dollars per share.
The maximum amount of approximately 0.272 billion shares of placing shares represents approximately 20.00% of the company's existing issued share capital as of the date of this announcement; and approximately 16.67% of the enlarged issued share capital after the placing and issue of placing shares (assuming full subscription of the placing shares). The minimum placing price of 0.146 Hong Kong dollars per placing share represents a discount of approximately 14.12% to the closing price of 0.170 Hong Kong dollars per share on October 18th (i.e., the last trading day) reported on the Stock Exchange.
Assuming all placing shares are fully subscribed at the minimum placing price, the total amount of funds raised from the placing will be approximately 39.7 million Hong Kong dollars; and the estimated net proceeds from the placing will be approximately 38.8 million Hong Kong dollars, with a net placing price of approximately 0.143 Hong Kong dollars per placing share. Of the estimated net proceeds of approximately 38.8 million Hong Kong dollars from the placing, approximately 45.0% or 17.46 million Hong Kong dollars will be used to enhance the group's existing credit matchmaking business and saas business; approximately 45.0% or 17.46 million Hong Kong dollars will be used for the development and expansion of the group's auto business; and approximately 10.0% or 3.88 million Hong Kong dollars will be used to supplement the group's general working capital.
