Zhitong Financial App News, China Regenerative Medicine (08158) issued a notice that the board of directors recommended the implementation of share consolidation, on the basis of merging every 10 issued and unissued existing shares into 1 consolidated share. A share merger shall not be confirmed until, among other things, an ordinary resolution is approved by the shareholders at the EGM.
The Board recommends that the capital reduction be implemented immediately after the share consolidation takes effect, the cancellation of any fractional consolidated shares arising from the share consolidation in the issued share capital of the company and the issued share capital of the company will be reduced by cancellation of fully paid share capital (up to HK $1.80 per then issued consolidated share), as a result, the nominal value of each issued consolidated share will be reduced from HK $2.00 to HK $0.20. The income from the equity reduction of approximately HK $514 million will be used to offset the company's accumulated loss balance as of the effective date of the equity reduction.
Immediately after the capital reduction, the statutory but unissued consolidated shares of HK $2.00 each will be split into 10 new shares of HK $0.20 each.
On 14 July 2023, the company entered into a subscription agreement with the subscribers, which conditionally agreed to allot and issue, and the subscribers conditionally agreed to subscribe for 18.8235 million subscription shares at the subscription price of HK $0.85 per subscription share (taking into account the impact of the capital reorganisation and equivalent to the theoretical share price of HK $0.085 before the capital reorganisation). The subscription amount of approximately HK $16 million payable by the subscriber under the subscription agreement will be repaid through capitalized repayment. Upon completion of the allotment and issue of 18.8235 million subscription shares, the company will be relieved of its repayment obligations for the repayment amount.
Apart from the equity reorganisation, assuming that there is no change in the issued share capital of the company between the date of this announcement and completion, a total of 18.8235 million subscription shares are equivalent to: approximately 6.60% of the issued share capital of the company as at the date of this announcement (taking into account the impact of the equity reorganisation).