Big Health International (02211) plans to implement a share capital restructuring

Zhitong Finance App News, Big Health International (02211) issued an announcement. The company proposes to implement a share capital restructuring involving: (i) share capital reduction. The method is to cancel the paid-up share capital at 0.09 US dollars per issued share. The face value of each issued existing share will be reduced from 0.10 US dollars to 0.01 US dollars;

(ii) Stock splitting, that is, the division of each statutory but unissued existing share with a face value of $0.10 per share into 10 adjusted shares with a face value of $0.01 per share immediately after the share capital reduction takes effect; and

(iii) The revenue generated as a result of the reduction in share capital will be used to offset the Company's cumulative losses on the effective date of the share capital reduction, thereby reducing the Company's cumulative losses. The balance of the deposit (if any) will be transferred to the Company for distribution of reserve accounts, and the Company may apply it in any manner permitted by all applicable laws and the Company's Memorandum and Rules of Association and deemed appropriate by the Board of Directors.

The board of directors recommended that, after the capital restructuring comes into effect, by offering up to 442 million shares at a subscription price of HK$0.40 per share to raise approximately HK$176.9 million (without deducting expenses). The benchmark is to issue 4 offering shares for each adjusted share held on the record date (the shares must be paid in full upon acceptance). The share offering has not been underwritten and will not be extended to ineligible shareholders (if any).

The Company will provisionally allocate 4 unpaid shares to eligible shareholders for every 1 issued adjusted share held on the record date.