Gelonghui, April 17, 丨 China Party Culture (01532.HK) announced that on April 17, 2024, the company signed a placement agreement with the exclusive placement agent. The company plans to place up to 296 million shares to be placed. The relevant price is HK$0.08 per share. The maximum number of shares to be placed is equivalent to approximately 20.00% of the existing issued share capital; and approximately 16,67% of the issued share capital after the allocation was expanded.
The total proceeds from the placement will be approximately HK$23.6 million, while the net proceeds will be approximately HK$23.1 million. The company plans to use the net proceeds from the placement for the following purposes: (i) RMB 7.0 million to expand the Group's clothing cleaning care, personal cleaning and home cleaning products business; (ii) RMB 8.2 million to cover the Group's debts due within 12 months; and (iii) RMB 6.2 million to fund general working capital to meet operating cash flow requirements to support business operations.
The directors believe that the placement is not only a good opportunity for the Group to raise further capital, but also broaden its shareholder base and capital base.