Gelonghui July 20?The Caihua Society Group (08317.HK) announces that as all the conditions relating to the rights issue, the placing Agreement and the underwriting Agreement have been fulfilled and the placing Agent and the underwriter have not terminated the placing Agreement and the underwriting Agreement respectively, the rights issue has become unconditional on Tuesday, 18 July 2023.
According to the previous announcement, at 04:00 on Wednesday, July 12, 2023 (that is, the final time limit for acceptance), the company has received a total of 12 valid applications involving a total of 285 million rights issue shares, accounting for approximately 85.46% of the total rights issue shares. As a result, 48464372 rights issue shares are undersubscribed, accounting for about 14.54 per cent of the total rights issue shares.
As at the record date, there were two unqualified shareholders and the number of rights issue shares originally allotted to them was 990597 rights issue shares.
Due to undersubscription and placement of the rights issue shares, a total of 6944372 unsubscribed rights issue shares (accounting for about 2.08 per cent of the total number of rights issue shares under the rights issue) are related to the underwriting arrangement, and the underwriter has underwritten all 6944372 unsubscribed rights issue shares in accordance with the terms of the underwriting agreement. The 6944372 underwriting shares underwritten by Maxx Capital (as an underwriter), together with 195798839 Rights shares and 21729029 Rights shares provisionally allotted to and subscribed by Maxx Capital and Ms. Law respectively, the total number of shares held by Maxx Capital and Ms. Law is 659527976 shares, accounting for approximately 65.97% of the company's expanded issued share capital immediately following the completion of the rights issue.
The total amount of proceeds raised (before offset) from the rights issue (including the placing and underwriting arrangements) is about HK $33.3 million, while the net proceeds from the rights issue is about HK $22.5 million. As disclosed in the prospectus, the Company intends to use the net proceeds from the rights issue for the following purposes: (I) approximately HK $12.5 million for repayment of shareholder loans; (ii) approximately HK $9 million for expanding investor relations business in Hong Kong and China; and (iii) a balance of approximately HK $1 million for general working capital of the Group.
In addition, trading in the fully paid Rights shares is expected to commence on the Stock Exchange at 09:00 on Monday, 24 July 2023.