Gelonghui, April 2, 丨 China Art Finance (01572.HK) announced that on April 2, 2024, the company (as issuer) entered into a subscription agreement with the subscriber Zhonglian Mathematical Group Co., Ltd., according to which the company conditionally agreed to issue a total of 12.5 million shares at HK$0.12 per share (discounted by about 11.11% from the closing price of HK$0.135 on the date of the subscription agreement), which is equivalent to approximately 0.74% of the existing issued share capital; and expand approximately 0.74% of the issued share capital through allotment.
The total proceeds from the subscription process and the net proceeds from the subscription process are approximately HK$1,500,000 and HK$1,450,000 respectively. The company plans to use the net proceeds from the subscription process as a project to establish a joint venture. The joint venture will provide software services for a centralized settlement system for various retail scenarios in the community.
To support the company's business development, the subscribers entered into a share subscription agreement with the company. Entering into a share subscription agreement will allow the company to expand its shareholder and capital base, improve the Group's financial position, and support the further development of the company's current and potential business and investment opportunities.