China Baoli Technology (00164) announced that on May 7, 2024, the company plans to place up to 16.803 million shares to be placed, which is equivalent to about 16.67% of the company's issued share capital after expansion. The placement price was HK$1.030 per share, a discount of approximately 16.94% from the closing price of HK$1.240 per share on May 7.
Assuming that the placement agent successfully places all of the placed shares, the total proceeds from the placement will be approximately HK$17 million and the net proceeds will be approximately HK$16 million. The directors intend to use all net proceeds to settle the Group's outstanding liabilities, amounting to approximately HK$11.2 million; developing the Group's business, amounting to approximately HK$3.2 million; and the Group's general working capital, amounting to approximately HK$1.6 million.