Gelonghui, January 26, 丨 Duoniu Technology (01961.HK) announced that on January 26, 2024, the company entered into a placement agreement with the placement agent. According to this, the company appoints an placement agent to place up to 50.7 million shares of the placement shares at a price of HK$1.775 per placed share to no less than six independent undertakers after the placement agent has been met in accordance with the best effort standards and prerequisites for placement. The company will allocate and issue placement shares in accordance with the general mandate granted to the directors at the annual general meeting of shareholders.
The placement price of HK$1.775 per share is a premium of approximately 28.6% over the closing price of HK$1.38 per share reported on the Stock Exchange on the date of the placement agreement. Assuming that the number of placed shares is known, the highest number of placed shares is equivalent to about 7.45% of the company's issued share capital expanded by the highest number of placed shares. Assuming that all of the shares placed were placed, the total proceeds and net proceeds from the placement would be approximately HK$90 million and HK$87.5 million respectively.
The Company intends to use the net proceeds to (i) the Group's operating and general working capital; (ii) further develop game products and artificial intelligence products; and (iii) strengthen and diversify the Group's gaming sector.