On January 6, Glonghui reported that GCL TECH (03800.HK) announced the placement of up to 1.56 billion shares of the company ("Placement"). The placement was completed on January 3, 2025. A total of 1.56 billion shares (equivalent to approximately 5.48% of the issued share capital after the placement shares are allocated and issued) have been placed to no less than six placees.
The net proceeds from the placement are expected to be approximately 1.53 billion Hong Kong dollars. Out of the total net proceeds of 1.53 billion Hong Kong dollars, about 0.94 billion Hong Kong dollars were received by the company on January 3, 2025, while approximately 0.59 billion Hong Kong dollars remain in the account of the placement agent, along with the interest accrued from January 3, 2025, until the actual receipt date by the company (expected to be January 6, 2025), waiting to be transferred to the company. The net proceeds from the placement will primarily be used for the following purposes: (i) about 60% (approximately 0.92 billion Hong Kong dollars) will be used for the group's capital expenditures to develop and expand the group's CECEP Solar Energy-related Business; and (ii) about 40% (approximately 0.61 billion Hong Kong dollars) will be reserved for general working capital purposes to facilitate the group's operating activities.
