Gelonghui, May 10, 丨 Volcanic Yidong International Holdings (01715.HK) announced the placement of up to 18,903,000 new shares in accordance with the special authorization granted by shareholders at the company's special shareholders' meeting held on March 27, 2024. In view of the recent market price of the shares reported on the Stock Exchange, the board of directors announced that the placement agent had entered into a termination agreement with the company, and the two parties agreed to terminate the previous placement agreement on May 10, 2024. As a result, all rights and responsibilities of the contracting parties under the previous placement agreement are no longer valid as of May 10, 2024.
On May 10, 2024, the company entered into a placement agreement with the placement agent. According to this, the company has agreed to place a maximum of 42,310,000 placement shares through the placement agent at a price of HK$0.52 per share on a best-effort basis to no less than six individual, institutional or professional investors (and they and their ultimate beneficial owners are all independent third parties). Placed shares will be distributed and issued in accordance with a new special mandate.
The maximum number of placed shares of 42,310,000 shares under placement matters accounted for approximately 35.88% of the company's issued share capital through allotment and issuance of placed shares. The placement price of HK$0.52 per share was discounted by approximately 14.8% from the closing price of HK$0.61 per share as reported on the date of the placement agreement. Assuming that all placed shares were sold, it is estimated that the total amount and net proceeds (after deducting placement commissions and other related expenses and professional expenses) would be approximately HK$22 million and approximately HK$21 million, respectively. The Company intends to use the net proceeds from the placement to repay the Group's other loans and supplement the Group's general working capital.