Xinda Holdings (08471) announced that on January 2, 2024, the company signed a placement agreement with the placement agent. According to the placement agreement, the company conditionally agrees to allocate and issue, while the placement agent conditionally agrees to place up to 100 million new shares to no less than six undertakers on a best-effort basis. The placement price is HK$0.08 per share. Undertakers and (where applicable) their respective ultimate beneficial owners shall be independent third parties. Placed shares will be issued under a general mandate.
Placed shares are equivalent to approximately 10.53% of the company's issued share capital after the allocation and issuance of the expanded placement shares. The placement price of HK$0.08 per share was discounted by 17.53% from the closing price of HK$0.097 per share as reported on the Stock Exchange on January 2, 2024.
According to the announcement, the net proceeds from the placement are expected to be approximately HK$7.7 million.