Summary by Moomoo AI
HENG YU GROUP (STOCK CODE: 2448) ANNOUNCED THAT IN ORDER TO ADAPT TO FUTURE EXPANSION AND GROWTH, THE BOARD OF DIRECTORS PROPOSED TO INCREASE THE COMPANY'S STATUTORY SHARE CAPITAL FROM 2 MILLION SHARES TO 100 BILLION SHARES AND TO CARRY OUT A SHARE CONSOLIDATION OF 1 SHARE PER 20 EXISTING SHARES. In addition, the Company offered a share offering plan to raise a maximum of approximately HK$157.847 million (before expenses) on the basis of the issuance of 4 shares for each consolidated share held. The offering will be made on a non-exclusive basis and will be subscribed for by eligible shareholders only. The share merger and dividend are subject to the approval of the Extraordinary General Meeting and are expected to be sent by or before 22 March 2024. Proceeds are intended to be used to repay approximately 90% of the Group's bank loans and overdrafts and approximately 10% as general working capital. The Board considers that this move will strengthen the company's financial position and raise additional funds for business operations.