Glonghui, October 6, 丨 Huasheng International Holdings (01323.HK) announced that on October 6, 2023, the placement agent signed a placement agreement with the company. The company plans to place up to 840 million shares for placement, accounting for about 20.00% of the currently issued shares; and about 16.67% of the issued share capital after allotment expansion. The placement price was HK$0.016 per share, which is approximately 15.79% off the closing price of HK$0.019 reported on the date of the placement agreement.
Upon completion of the placement, it is anticipated that the highest total proceeds and net proceeds from the placement will be approximately HK$13.43 million and HK$13.12 million, respectively.
The Company intends to use the net proceeds from the placement to pay the Group's outstanding short-term liabilities. If the Group's bank balance and cash are insufficient to pay these short-term liabilities, the Group may conduct further fund-raising activities to raise additional capital.
The directors believe that the placement matter is a good opportunity to raise additional capital through the equity market and will strengthen the Group's financial position.