Zhitong Financial News, Guoen Holdings (08121) announced that the board of directors proposed the implementation of share capital restructuring, including proposed share merger, proposed share capital reduction and spin-off.
Proposed Share Consolidation: The Board of Directors has recommended a par value of 0. per 20 issued and unissued sharesThe existing shares of HK$10 were consolidated into 1 share with a par value of 2HK$00 of the consolidated shares will be implemented on the basis of share consolidation.
share capital reduction, whereby the fractional shares of the consolidated shares arising from the share consolidation in the issued share capital of the Company will be cancelled, and by cancellation of each issued consolidated share1With a paid-up share capital of HK$99, the par value of each issued consolidated share will increase from 2HK$00 reduced to 0HK$01, and each issued consolidated share will become one share with a par value of 0HK$01 New Ordinary Shares;
The proceeds arising from the share capital reduction will be used to offset the Company's accumulated losses as at the effective date of the share capital reduction, thereby reducing the Company's accumulated losses. The balance of the receipts, if any, will be transferred to the Company's distributable reserves and used for the purposes permitted by all applicable laws and the Company's Articles of Association and as the Board considers fit; And.
Immediately after the share capital reduction takes effect, each statutory but unissued consolidated share will be split into 200 shares with a par value of 0HK$01 statutory but not issued new ordinary shares.
Subject to the effective date of the share capital restructuring, the Company proposes to issue two rights shares for every one new ordinary share held on the record date, through a subscription price of 104 The maximum rights issue of HKD is 166720,000 rights shares, raising gross proceeds of up to approximately HK$17.3 million (before expenses). The rights issue will only be offered to eligible shareholders and will not be offered to non-eligible shareholders.
Assuming that the rights issue is fully subscribed, the net proceeds will be about HK$15.2 million. approximately HK$10 million will be used to develop the Group's business in the PRC; and approximately HK$5.2 million to be used for the Group's general working capital.