Gelonghui, Feb. 19, 丨 Jacochen Pharmaceutical (02633.HK) announced that on February 19, 2024, the company signed a placement agreement with the placement agent. The company plans to place a total of 66 million shares, accounting for about 3.41% of the issued shares and about 3.30% of the issued share capital after the issuance was expanded. The placement price for each placed share is HK$0.60, which is approximately 1.64% off the closing price of HK$0.61 per share as reported on the date of the placement agreement.
Assuming full distribution of the shares placed, the total proceeds from the placement would be approximately HK$39.6 million, and the net proceeds are expected to be approximately HK$38.8 million. The company plans to use the net proceeds to expand its production capacity by enhancing the automation of production and packaging processes. The net proceeds will mainly be used to finance the refurbishment of the Group's production facilities and the acquisition of machinery and equipment.