Des Holdings (08437.HK) announced that it proposes to issue up to 432 million rights issue shares in the form of a rights issue at a price of 0.10 yuan per share, a discount of about 29.58% from yesterday's closing price of 0.142 yuan, on the basis that eligible shareholders will receive one rights issue share for every two existing shares held on the record date.
The total amount of money raised is $43.2 million and the net proceeds will be about $41 million. About 30% will be used as general working capital; about 40% will be used for potential development plans for China's medical and beauty business, medical imaging business and dental services related business; about 20% will be used to repay part of the outstanding debt; about 10% will be used to buy medical equipment and products.