Gelonghui, March 1 | Hengyu Group (02448.HK) announced that the board of directors proposed a share consolidation proposal to shareholders, involving merging the issued and unissued existing shares with a face value of HK$0.01 per twenty (20) shares into one (1) consolidated share with a face value of HK$0.20 per share. Stock mergers are subject to approval by shareholders (including) in the form of an ordinary resolution at the special shareholders' meeting before they can actually be implemented. Currently, shares are traded on the Stock Exchange with 2,500 shares per trading unit. After the share merger comes into effect, the trading unit for each lot of consolidated shares will still be 2,500 consolidated shares.
The Company proposes to raise up to HK$158 million (before expenses) of the consolidated shares by issuing up to 232,128,000 consolidated shares for each share offered at the subscription price of HK$0.034 per share (or HK$0.68 per consolidated share after the share merger takes effect) on the record date of issuing four (4) share offering shares for each (1) consolidated share held on the record date after the increase in authorized share capital and the share merger comes into effect.