FENGXIANG CO plans to issue a maximum of approximately 183 million shares to two investors for subscription, raising a net amount of approximately HKD 272 million.
FENGXIANG CO announced on August 26, 2023 that it has entered into subscription agreements with Subscriber A and Subscriber B, intending to issue a maximum of approximately 157 million shares and 25.939 million shares of subscription shares to Subscriber A and Subscriber B, respectively, at a subscription price of HKD 1.5132 per H share. Assuming that Subscriber A subscribes for a maximum of approximately 157 million shares of subscription shares, the total number of subscription shares under the subscription will be approximately 183 million shares. The estimated total amount of proceeds from the subscription is approximately HKD 276 million, with a net amount of approximately HKD 272 million. 70% of the proceeds will be used to repay the Group's short-term borrowings (approximately RMB 1.1 billion as of December 31, 2022) to improve the company's liquidity position, while 30% will be used to supplement the company's working capital, mainly for covering operating costs and expenses such as animal feed costs, seasoning costs for the development of deep-processed chicken products, and environmental-related costs. It is reported that Subscriber A, Platinum Peony B 2023 RSC Limited, is a restricted scope company registered under the laws and regulations of the Abu Dhabi Global Market in the United Arab Emirates (Emirates of Abu Dhabi), indirectly wholly owned by the Abu Dhabi Investment Authority.
According to Dolphin Research APP, FENGXIANG CO (09977) announced that on August 26, 2023, the company entered into subscription agreements with Subscriber A and Subscriber B, intending to issue a maximum of approximately 157 million shares and 25.939 million shares of subscription shares to Subscriber A and Subscriber B respectively, at a subscription price of HKD 1.5132 per H share.
Assuming that Subscriber A subscribes for a maximum of approximately 157 million shares of subscription shares, and the total number of subscription shares under the subscription matters is approximately 183 million shares, the total amount of the highest proceeds from the subscription matters is expected to be approximately HKD 276 million, with a net amount of approximately HKD 272 million. 70% of the proceeds will be used to improve the company's liquidity by repaying the group's short-term borrowings (approximately RMB 1.1 billion as of December 31, 2022), and 30% will be used to supplement the company's working capital, mainly for covering operating costs and expenses such as animal feed costs, seasoning costs for the development of deep-processed chicken products, and environmental-related costs.
It is reported that Subscriber A, Platinum Peony B 2023 RSC Limited, is a restricted scope company registered under the laws and regulations of the Abu Dhabi Global Market in the United Arab Emirates (Emirates of Abu Dhabi), indirectly wholly owned by the Abu Dhabi Investment Authority.
Subscriber B, Chelt Trading Limited, is an international business company registered under the laws of the British Virgin Islands, mainly engaged in private equity fund investment and holding in the real estate, restaurant, food, technology, energy, biotechnology, pharmaceutical, and medical supplies industries. The shares of Subscriber B are ultimately held by an individual named Jaime Javier Montealegre Lacayo.