Guangjun Group (08516.HK) announced that in order to facilitate the placing and to tie in with future expansion and growth, so as to give the company more flexibility to raise funds through the allotment and issue of shares in the future, after the share merger takes effect, it proposes to increase the authorised share capital from $10 million to $20 million through the creation of an additional 100 million newly consolidated shares.
The company is of the view that the increase in authorized share capital will give the company the flexibility to raise capital and expand its share capital in the future.