Gelonghui, January 12 | Tongda Hongtai (02363.HK) announced that the board of directors proposed a share merger. According to this, every ten (10) shares of issued and unissued existing shares with a face value of HK$0.01 per share will be merged into one (1) consolidated share with a face value of HK$0.10 per share. Stock mergers are subject to approval by shareholders (including) by voting at the Extraordinary General Meeting of Shareholders. On the date of the announcement, existing shares were traded on the Stock Exchange with 2,500 existing shares per trading unit. The board of directors recommended that after the share merger comes into effect, the trading unit for each lot traded on the Stock Exchange will be changed from 2,500 existing shares to 5,000 consolidated shares.
The company proposed to issue two shares for each consolidated share held on the record date, to offer shares at a subscription price of HK$0.58 per share, and raise approximately HK$79 million through the issuance of 136,149,382 shares offered to eligible shareholders. The net proceeds from the stock offering (after deducting estimated expenses of approximately HK$3 million) are estimated to be approximately HK$76 million.