China Tianhua Chemical (00362) announced that on March 13, 2024, the company (as issuer) signed a subscription agreement with the subscriber. The subscriber agreed to subscribe and the company agreed to allocate and issue a total of 108 million subscribed shares at a subscription price of HK$0.1 per subscription share.
Assuming that there is no change in the company's issued share capital between the date of this announcement and the date of completion, the subscribed shares are equivalent to about 11.45% of the company's current issued share capital at the date of this announcement; and about 10.27% of the company's issued share capital expanded through allotment and issuance of subscribed shares.
The subscription price is HK$0.1 per subscription share, which is about 13.79% off the closing price of HK$0.116 per share reported on the Stock Exchange on March 13, 2024; and the average closing price of HK$0.098 per share reported on the Stock Exchange on the five consecutive trading days immediately before the subscription agreement date is about 2.04%.
Assuming that all of the subscribed shares are subscribed, the total proceeds from the subscription are expected to be approximately HK$10.8 million. After deducting expenses, the estimated net proceeds from the subscription will be approximately HK$10.3 million, which is equivalent to the net price of each subscribed share of approximately HK$0.095. Proceeds are intended to be used as the Group's general working capital.