Rende Resources (08125) announced that on January 17, 2024, the company entered into a placement agreement with the placement agent. The company has agreed to place up to 376.272 million shares at an placement price of HK$0.201 per share through the placement agent to no less than six undertakers (they and their ultimate beneficial owners are all independent third parties).
Assuming that there were no further changes to the company's share capital structure before completion, the maximum amount of 376.272 million shares placed under the placement was equivalent to about 16.67% of the 226 million shares of the company's issued share capital expanded through the placement. The placement price of HK$0.201 per share was discounted by approximately 16.6% from the closing price of HK$0.241 per share on January 17.
Assuming that a maximum of 37.6.272 million shares are fully placed, the net proceeds (after deducting placement commissions and other related expenses) are estimated to be approximately HK$7.4 million. The company plans to use approximately HK$6.6 million (equivalent to about 89% of the net proceeds from the placement) as working capital for the engineering business and leasing business to meet the expected increase in demand from these two business segments; and approximately HK$800,000 (equivalent to about 11% of the net proceeds from the placement) as the Group's general working capital.