Zhitong Financial APP News, Ronghui Holdings (08213) issued a notice on the merger of the original shares, that is, every five issued and unissued existing shares with a par value of HK $0.01each will be merged into a consolidated share with a par value of HK $0.05m.
The average closing price of the shares on the Stock Exchange for the last five consecutive trading days immediately preceding the extraordinary general meeting of the Company (originally scheduled for 19 November 2021 to approve the original share merger) was approximately HK $0.03. After the original share consolidation takes effect, the share price will be adjusted to approximately HK $0.15 per consolidated share based on the average closing price of approximately HK $0.03 per existing share. If there are 10 000 shares per lot, the value of the new lot will be about HK $1500, which is lower than the estimated value of HK $2000 per lot as stipulated in the guidelines on trading arrangements.
Therefore, the original share consolidation will not enable the company to comply with the trading requirements of the GEM listing rules and the company intends to modify the original share consolidation structure and merge every 8 issued and unissued existing shares into one consolidated share of HK $0.08 each. The merger of shares shall be subject to, among other things, the approval of the shareholders at the extraordinary general meeting of shareholders.