Gelonghui, March 21, 丨 Kang Fang Biotech (09926.HK) announced that on March 21, 2024, the company entered into a placement agreement with the placement agent (i.e. Morgan Stanley Asia Limited and CITIC Lyon Securities Limited). According to this, the company has agreed to place a total of 24.8 million shares to no less than six undertakers through the placement agent at a price of HK$47.65 per share.
Placed shares are equivalent to about 2.95% of the company's current issued share capital and approximately 2.86% of the issued share capital was expanded immediately after the placement. Placed shares will be distributed and issued in accordance with a general mandate without shareholders' approval. Assuming that 24.8 million shares are fully subscribed, the total proceeds after the placement is completed will be HK$1,1817.2 million, and the net proceeds from the placement are estimated to be HK$1,1701.8 million.
The net proceeds from the placement will be used for the following purposes: (i) 65% will be used for the following research and development: (a) multiple pre-clinical projects entering the IND stage; (b) developing technology platforms (i.e. ADC platforms); and (c) accelerating global clinical trials of cardonil (AK104, PD1/CTLA-4), rafferil (AK117, CD47); (ii) 25% will be used for commercialization of cardonil and evossi; and (iii) 10% will be used for other general corporate purposes (where applicable).