Elephant Holding Group (08635) plans to discount approximately 15.93% of up to 63 million shares to raise approximately HK$11.8 million

According to Zhitong Finance App News, Elephant Holding Group (08635) issued an announcement. On July 31, 2026, the Company entered into a placement agreement with the placement agent. According to this, the Company conditionally agreed to place up to 63 million shares to no less than six undertakers (themselves and their ultimate beneficial owners are independent third parties) at an placement price of HK$0.19 per share in accordance with the best effort principle. Placed shares will be distributed and issued in accordance with a general mandate.

Assuming that the Company's share capital structure remains unchanged before completion, the maximum number of 63 million shares placed under the placement accounts for: (i) approximately 13.13% of the Company's current issued share capital of 480 million shares at the date of this announcement; and (ii) approximately 11.60% of the 543 million shares of the Company's issued share capital after the expansion of the placement. The total face value of the maximum number of shares to be placed under the placement will be HK$630,000 (calculated at HK$0.01 per share).

The placement price of HK$0.19 is compared to: (i) a discount of approximately 15.93% of HK$0.226 per share at the closing price of HK$0.226 per share on the date of the placement agreement; and (ii) a discount of approximately 19.22% on the average closing price of HK$0.235 per share reported on the Stock Exchange on the last five consecutive trading days prior to the date of the placement agreement.

Assuming that all the shares placed are fully placed, the total proceeds from the placement would be approximately HK$12 million. After deducting all costs associated with the placement (including but not limited to placement commissions, legal expenses and professional fees), the estimated net proceeds are approximately HK$11.8 million. The Company intends to use (i) about 20% of the net proceeds (approximately HK$2.4 million) for the development of the Group's existing AI-driven solutions business; (ii) approximately 70% (approximately HK$8.2 million) of the net proceeds to develop the Group's AI hardware system integration business, including but not limited to hardware equipment and component procurement, server and cluster integration, AI agent deployment, software adaptation, system optimization, and/or related R&D activities; and (iii) use approximately 10% (approximately HK$1.2 million) of the net proceeds for the Group's general operating capital.