Gelonghui, May 14, 丨 Cat Poop Coffee Holdings (01869.HK) announced that on May 14, 2024, the company signed a placement agreement with the placement agent. According to this, the company plans to place up to 221 million shares, which is equivalent to about 20% of the issued share capital; and about 16.67% of the issued share capital after all allotments and issuance of the placed shares were expanded. The placement price is HK$0.144 per share, a discount of approximately 19.10% compared to the closing price of HK$0.1,780 per share as reported on the date of conclusion of the placement agreement.
It is estimated that the total proceeds and net proceeds from the placement will be approximately HK$31.83 million and approximately HK$30.94 million respectively.
The company intends to use the net proceeds from the placement for (i) the cat poop coffee business in China and Hong Kong; and (ii) the Group's operating and general working capital.
The directors believe that the placement will (i) enhance the Group's financial position, (ii) provide greater financial capacity and flexibility for the business development of the Group's cat poop coffee business, and (iii) broaden the company's shareholder base.