China New Consumer Group (08275) issued an announcement. On January 25, 2024, the placement agent entered into a placement agreement with the company. According to this, the placement agent agreed to place up to 80 million shares to no less than 6 undertakers at a price of approximately HK$0.176 per share on a best-effort basis.
Assuming that there is no change in the company's issued share capital between the date of this announcement and the date of completion, the maximum number of placed shares accounts for about 16.67% of the expanded issued share capital of the allocated and issued placed shares. The placement price of HK$0.176 is approximately 19.63% off the closing price of HK$0.219 as reported on January 25.
The maximum net proceeds are expected to be approximately HK$13.39 million. The Company intends to use the net proceeds from these placements for the following purposes: the net proceeds from the placement of approximately HK$10 million or 74.68% of the share capital of the Company's subsidiaries to be used for the Group's petroleum trading business; and approximately HK$3.39 million or 25.32% of the net proceeds from the placement to supplement the Group's general working capital.