Ever King Group Holdings (08275.HK) proposed a share consolidation based on one consolidated share for every 5 existing shares. The share merger is only valid until the shareholders vote by poll at the extraordinary General Meeting.
The Company also proposed to raise approximately $44.6 million for the issue of 81 million right shares at the subscription price of $0.55 per share on the basis of three right shares for every 2 consolidated shares held on the record date, compared to the theoretical closing price discount of the consolidated shares.
Net RIGHTS Proceeds are estimated at a maximum of about $42.6 million, of which about $3.1 million for repayment of principal and interest accrued on the existing office properties will expire in April this year, about $20 million for the acquisition of new office properties and related renovation costs; about $7 million for additional full-time staff; About $3 million is spent on business development and marketing expenses; the balance is about $9.5 million for general working capital.