Zitong Financial App News, Global Printing Hall (08448) issued a notice that the board of directors recommended the implementation of share consolidation, and every five issued and unissued existing shares with a par value of HK $0.01each would be merged into one consolidated share with a par value of HK $0.05m. The share merger shall be confirmed only after the approval of the shareholders by voting at the EGM and will take effect two business days after the EGM.
The Board recommends that the authorised share capital of the company be increased from HK $20 million (divided into 2 billion existing shares) to HK $200 million (divided into 20 billion existing shares (4 billion consolidated shares after the share consolidation takes effect). After the ordinary resolution approving the increase in authorized share capital is passed by the shareholders at the EGM, the increase in authorised share capital will take effect on the date of the EGM.
After the increase in authorised share capital and the entry into force of the share consolidation, the Board recommends that the rights issue be made at the subscription price of HK $0.115 per rights issue on the basis of 3 rights shares for every 2 consolidated shares held on the record date, raise a maximum of approximately HK $34.43 million (before expenses) through the issue of 299.4 million rights shares. Assuming that there is no change in the number of shares issued on or before the record date, the estimated net proceeds from the rights issue (after deducting all estimated expenses) will be approximately HK $32.81 million.
The Group intends to use the net proceeds from the rights issue to repay trade and other payables and accrued expenses; to repay shareholders' loans; and general working capital.
Under the underwriting Agreement, New Metro will underwrite up to 163.6 million Rights shares, representing the 136 million Rights shares to be subscribed by New Metro, Mr. Tsang and Mr. Zhao under the irrevocable undertaking.