Gelonghui, April 23, 丨 Yaogao Holdings (01796.HK) issued an announcement. On April 22, 2024, the company entered into a placement agreement with the placement agent (i.e. Fuhui Securities Limited). According to this, the company has agreed to use the placement agent to place up to 24 million shares to no less than six undertakers on a dedicated basis. The placement price is HK$4.03 per share.
The maximum number of shares placed under the placement of 24 million shares is equivalent to 5.0% of the company's current share capital of 480 million shares; and about 4.8% of the 504 million shares expanded through the allocation and issuance of the placed shares. The placement price was HK$4.03 per share, a discount of approximately 18.91% per share from the closing price of HK$4.97 per share as reported on the date of the placement agreement.
The maximum total proceeds and net proceeds from the placement will be approximately HK$96.7 million and HK$94.7 million respectively, equivalent to the net issue price of approximately HK$3.946 per placed share. The Company intends to use 80% of the net proceeds from the placement (i.e. approximately HK$75.8 million) for the Group's existing renovation service business; and 20% of the net proceeds from the placement (i.e. approximately HK$18.9 million) for the Group's general working capital and MetaSpaceX Web3 business as detailed in the company's announcement dated April 1, 2024.