Gelonghui, April 3, 丨 Acer Group Holdings (01718.HK) announced that on April 3, 2024, the company signed a placement agreement with the placement agent. The company plans to place up to 19.2 million shares, equivalent to 20.00% of the total number of issued shares, and about 16.66% of the total number of issued shares expanded through allotment. The placement price of HK$1.00 per share was discounted by approximately 14.53% from the closing price of HK$1.17 per share reported on the Stock Exchange on the last trading day.
The total proceeds from the placement will be approximately HK$19.2 million, while the net proceeds will be approximately HK$18.7 million. The directors intend to use all of the net proceeds for the administrative and operating expenses of the Group's Hong Kong headquarters (including directors' and employees' remuneration, rent expenses, professional expenses and other operating expenses).
The directors have considered offering shares to raise capital, but believe that compared to placement matters, since the share offering involves the publication of the share offering regulations and other applications and administrative procedures, the share offering will take a long time to complete and will incur additional administrative costs. The directors believe that placement matters save the company more time and money.