Gelonghui September 3?Dilute magnesium Technology (00601.HK) announced that the company proposes to issue a rights issue on the basis of one rights issue for every 2 existing shares held at the subscription price of HK $0.08 per rights issue share on the record date. Raise from eligible shareholders (before deducting expenses) not less than approximately HK $15.8 million (assuming that there is no change in the number of shares issued on or before the record date) but not exceeding approximately HK $16.58 million (assuming that all outstanding options and convertible bonds have been exercised or converted on or before the record date). Eligible shareholders shall have the right to apply for rights issue shares in excess of their respective quotas under the rights issue.

The company will provisionally allot one unpaid rights issue share for every two shares held by eligible shareholders on the record date.The rights issue does not apply to unqualified shareholders. Based on the minimum number of rights issue shares of 197531701 rights issue shares, the net proceeds from the rights issue are estimated to be about HK $14.4 million. Based on a maximum of 207330633 rights issue shares, the net proceeds from the rights issue are estimated to be about HK $15.1 million. About 50% of the net proceeds (that is, about HK $7.2 million to HK $7.6 million) are planned to cover ongoing administrative and operating expenses. These costs include operating expenses on salaries, rents, utilities and other necessary operating items. The remaining 50% (that is, about HK $7.2 million to HK $7.6 million) will be spent mainlyInPromote the growth of the group's existing magnesium business, such as supporting production costs, promoting raw material procurement, etc.

ForInThe record date is registered as the shareholder of the company, and all share transfer documents (together with the relevant shares and ╱ or instruments of transfer) mustInBefore 04:30 in the afternoon (not laterInThe final time limit for submission) shall be delivered to the transfer office. The last date for buying and selling shares on a joint basis is Tuesday, September 12, 2023. The shares will be traded on an ex-entitlement basis from Wednesday, September 13, 2023.

In accordance with the MX commitment, Ming Xin has irrevocably committed to the Company and the underwriter: (I) subscribe for 79016595 rights issue shares (i.e. itsInFull quota under rights issue); (ii) until and including the record date, no conversion rights attached to MX convertible bonds with the principal amount of HK $447076299 (convertible into 372563582 new shares) will be exercised; (iii) until and including the record date, MX convertible bonds with the principal amount of HK $447076299 will continue to be registeredInOwned and beneficially owned by Ming Xin; and (iv) will not apply for more than itInAny rights issue shares under the additional application form for the quota under the rights issue.

InOn September 1, 2023, the company entered into an underwriting agreement with the underwriter on the underwriting of the rights issue and related arrangements. According to the underwriting agreement, the underwriter conditionally agrees to underwrite quite a lot on the basis of full underwriting.In118515106 shares and not muchIn128314038 shares are underwritten subject to the terms and conditions contained in the underwriting agreement and in particular to the performance of the prerequisites contained therein.