Xinda Holdings (08471) announced that on April 16, 2024, the company signed a placement agreement with the placement agent. According to the placement agreement, the company conditionally agreed to allocate and issue, while the placement agent conditionally agreed to place up to 70 million new shares to no less than six undertakers on a best-effort basis. The placement price was HK$0.07 per share. Undertakers and (where applicable) their respective ultimate beneficial owners shall be independent third parties. Placed shares will be issued under a general mandate.
The placement price of HK$0.07 per share is a 13.58% discount on the closing price of HK$0.081 per share reported on the Stock Exchange on April 16, 2024 (the date of the placement agreement).
Placed shares are equivalent to approximately 7.37% of the company's existing issued share capital and approximately 6.86% of the company's issued share capital after being expanded through allotment and issuance of placed shares. Placing matters are subject to approval by the Stock Exchange for listing and trading of the placement shares before they can be implemented.
The total and net proceeds from the placement are expected to be HK$4.9 million and approximately HK$4.7 million respectively.