Zhengwei Group (02147) plans to increase the authorized share capital and issue shares according to the “1 to 6” basis

Zhitong Finance App News, Zhengwei Group (02147) issued an announcement. The board of directors proposed increasing the company's authorized share capital from 80 million US dollars (divided into 400 million shares with a face value of 0.2 US dollars per share) to 160 million US dollars (divided into 800 million shares with a face value of 0.2 US dollars per share) by adding an additional 400 million unissued shares with a face value of 0.2 US dollars per share. The proposed increase in authorized share capital must be approved by shareholders in the form of an ordinary resolution at the special shareholders' meeting before it can be implemented.

The Board recommended that shares be offered at a subscription price of HK$0.4 on the basis that 6 shares were issued for every 1 share held on the record date. Assuming that there is no change in the total number of shares issued from the date of this announcement until the recorded date (including that date), the company will issue a maximum of 403.2 million shares offered and raise up to HK$161 million (before deducting expenses). The estimated net proceeds from the stock offering will be approximately HK$160.4 million. The company plans to use 100% of the net proceeds from the stock offering to repay the Group's bank loans.