Guoen Holdings (08121) announced that the board of directors recommended implementing share capital restructuring, including proposed share mergers, proposed share capital cuts...
Zhitong Finance App News, Guoen Holdings (08121) announced that the board of directors proposed capital restructuring, including proposed share mergers, proposed share capital reductions, and spin-offs.
Proposed share consolidation: The Board of Directors recommended that a share consolidation be implemented on the basis of merging 20 existing shares with a face value of HK$0.10 per issued and unissued share into 1 consolidated share with a face value of HK$2.00 per share.
Share capital reduction. According to this, consolidated share splits resulting from share mergers in the company's issued share capital will be cancelled, and by cancelling the paid-up share capital of HK$1.99 per issued consolidated share, the face value of each issued consolidated share will be reduced from HK$2.00 to HK$0.01, and after the reduction, each issued consolidated share will become a new common share with a face value of HK$0.01 per share;
The accounts due to the reduction in share capital will be used to offset the company's cumulative losses on the effective date of the share capital reduction, thereby reducing the company's cumulative losses. The balance of the incoming account (if any) will be transferred to the Company for the purposes permitted by all applicable laws and the Company's Memorandum and Articles of Association and as the Board of Directors deems appropriate; and
Immediately after the share capital reduction comes into effect, each authorized but unissued consolidated share will be split into 200 new unissued common shares with a face value of HK$0.01 per share.
After the share capital restructuring comes into effect, the company proposes to raise up to HK$17.3 million (before deducting expenses) according to the benchmark that 2 shares can be issued for each new common share held on the record date. By offering up to 16.672 million shares of the shares offered at the subscription price of HK$1.04 per share, the maximum amount raised is approximately HK$17.3 million (before deducting expenses). The stock offering will only be presented to eligible shareholders, not to ineligible shareholders.
Assuming that all shares are subscribed, the net raise is approximately HK$15.2 million. Approximately HK$10 million will be used to develop the Group's business in China; and approximately HK$5.2 million will be used as the Group's general working capital.