Fuxing Asia (00274) issued an announcement. On February 8, 2024, the target company Hunan Xi'ao Mining Co., Ltd...
Zhitong Finance App News, Fuxing Asia (00274) announced that on February 8, 2024, the target company Hunan Xi'ao Mining Co., Ltd. (a non-wholly-owned subsidiary of the company) signed a capitalization agreement with the investor Hunan Juji Win-Win Enterprise Consulting Partnership (limited partnership). Based on this, the investors agreed to inject RMB 81.9 million into shares by converting the RMB 81.9 million debt held by the target company. After completion, the registered capital of the target company will increase from approximately US$36.9 million to approximately US$48.3 million.
Following completion, the target company will be owned by Westralian Resources (a wholly-owned subsidiary of the company), investors, Mr. Choi Shuo, Mr. Wu, and Mr. Choi, respectively, about 31.3%, about 23.6%, about 17.8%, about 15.0% and about 12.3%, respectively. As a result, due to capitalization, the Group's shares in the target company will be diluted by about 41.0% to about 31.3%.
According to the announcement, capitalization indicates that the directors are making continuous efforts to improve the working capital and financial situation of the group by capitalizing part of the group's debts to investors.