APOLLO Travel (00860) announced that on March 15, 2024, the company signed separate subscription agreements with these subscribers. The company has agreed to allocate and issue conditions, and these subscribers have agreed to subscribe for a total of 446 million subscribed shares. The subscription price is HK$0.46 per subscribed share.
Assuming that there is no change in the issued share capital of the company from the date of this announcement until completion (except for the issuer of the subscription matter), a total of 446 million subscribed shares pre-allotted and issued in accordance with the subscription matters account for about 43.59% of the total number of issued shares expanded through allotment and issuance of subscription shares immediately after completion. The subscription price of HK$0.46 per share was discounted by approximately 9.80% compared to the shares reported on March 15 (HK$0.51 per share at the closing price of HK$0.51 on the Stock Exchange.
According to the announcement, the net proceeds from the subscription (after accounting for about HK$39 million off of convertible bonds and about HK$3.5 million for all professional fees and related expenses) are estimated to be approximately HK$163 million (equivalent to a net subscription price of approximately HK$0.36 per subscription share). The subscription matter will enable the company to strengthen its financial position. The intended use of the net proceeds from subscription transactions is approximately HK$71.3 million or 43.8% to develop the travel service business; approximately HK$75 million or 46.2% to repay debts; and approximately HK$16.2 million or 10.0% for general working capital.