Hang Yick Holdings (01894) plans to carry out capital restructuring and fund-raising activities

Zhitong Finance App News, Hengyi Holdings (01894) announced that the board of directors plans to carry out capital restructuring and fund-raising activities involving (i) share mergers; (ii) increase in authorized share capital; and (iii) share offering.

The company proposes to consolidate shares on the basis of merging every 20 issued and unissued shares into 1 consolidated share.

The board of directors proposed increasing the authorized share capital of the company from HK$38 million (divided into 3.8 billion shares) to HK$76 million (divided into 7.6 billion shares) (or 380 million consolidated shares after the share merger came into effect). The increase in authorized share capital will not take effect until the shareholders pass an ordinary resolution to approve the increase in authorized share capital at the special shareholders' meeting.

After the share consolidation and increase in authorized share capital come into effect, the board of directors recommended offering shares at the subscription price of HK$0.46 per share of the offering on the record date, to raise the total amount of proceeds before deducting expenses of approximately HK$84.7 million by submitting up to 184,224,000 shares to eligible shareholders (assuming that the total number of shares issued on or before the record date remains unchanged after accounting for the impact of the share consolidation). The stock offering is for subscription by eligible shareholders only and will not be presented to excluded shareholders. If fully subscribed, the estimated net proceeds from the share offering will be approximately HK$82 million after deducting all necessary expenses, 64.0% will be used to support the Group's existing and potential new projects, and 22.0% will be used to settle debts including trade and other payables and accruals.