Qiansheng Group Holdings (08475. HK) announced that the board of directors plans to submit proposals for share merger to shareholders and plans to “10 in 1” merge shares. At present, the shares are traded on the stock exchange with 5000 shares per trading unit. After the merger takes effect, each trading unit of the combined shares will still be 5000 combined shares.
The company proposes that after the merger takes effect, it plans to issue up to 88 million rights shares at HK $0.57 per rights share, and the total amount of proceeds (before expenses) raised is up to HK $50.2 million.
The net proceeds from the rights issue are estimated not to exceed approximately HK $48.1 million. The company intends to use the net proceeds from the rights issue in the following order of priority: (I) to repay the loans (including principal and related interest) due and payable in the next 12 months, lease liabilities and lease related expenses; (II) used as the working capital of the group in the next 12 months; (III) to finance and fund part of the costs and costs associated with the acquisition.
