Zhitong Financial APP News, Gaoshan Enterprise (00616) issued an announcement that all the conditions of the placing agreement have been reached, and the placement has been completed on August 3, 2023. A total of 50 million placing shares have been successfully placed by the placing Agent to not less than six Placees at the placing price of HK $0.50 per placing share in accordance with the terms and conditions of the placing Agreement, which is equivalent to about 48.47 per cent of the issued share capital of the company expanded by the placing and issue of the placing shares immediately following the completion of the placing.
The net proceeds from the placing (after deducting the placing commission and other related expenses and expenses related to the placing) is approximately HK $24.66 million and will be used to repay the Group's bank loans.
As at the date of this announcement, the outstanding principal amount of the 2023 convertible notes issued on February 20, 2023 is HK $209 million. For 2023 convertible notes, the conversion price has been adjusted from HK $0.106 per conversion share to HK $4.24 per conversion share since the capital restructuring took effect on July 19, 2023, while the number of conversion shares has been adjusted from 1.972 billion to 49.2925 million conversion shares. And following the completion of the placing on 3 August 2023, the exchange price has been further adjusted to HK $3.70 per conversion share and the number of conversion shares has been further adjusted to 56.4865 million conversion shares.