Glonghui, December 14|Meijiehui Holdings (01389.HK) announced that the board of directors intends to submit a proposal to shareholders to implement a share merger involving the consolidation of existing shares with a face value of HK$0.00125 per share for every ten (10) issued and unissued shares into one (1) consolidated share with a face value of HK$0.0125 per share.
On the date of the announcement, the existing shares were traded on the Stock Exchange with 4,000 existing shares per trading unit. After the share consolidation takes effect, the board of directors proposes to change the trading unit for each lot traded on the Stock Exchange from 4,000 existing shares to 12,000 consolidated shares.
The Board recommended that after (this includes) the commencement of the share consolidation, the total proceeds would be raised about HK$30.2 million (before deduction of expenses) (assuming no further shares were issued or repurchased on or before the record date) at a subscription price of HK$0.136 per offering share at a subscription price of HK$0.136 for each of the three (3) consolidated shares held on the record date, and by supplying up to 221,733,332 shares to eligible shareholders.