Jinlun Tiandi Holdings (01232) plans to reduce share capital, subdivide and change the trading unit of each lot, and then supply shares according to the “3 to 1” basis

Zhitong Finance App News, Jinlun Tiandi Holdings (01232) issued an announcement. The company proposed implementing a share capital reduction involving reducing the face value of each issued share from $0.10 to $0.01 by canceling the paid-up share capital of 0.09 US dollars per issued share. As a result, after this reduction, the issued shares with a face value of 0.10 US dollars per share in the company's share capital will become a new issued share with a face value of 0.01 US dollars per share. Approximately US$18.94 million in revenue from the share capital reduction will be used to offset the company's cumulative losses on the effective date of the share capital reduction, thereby reducing the company's cumulative losses, and any balance will be transferred to the company's distributable reserve account, which can be used by directors as distributable reserves.

Immediately after the share capital reduction comes into effect, each statutory but unissued share with a face value of $0.10 will be split into 10 statutory but unissued new shares with a face value of 0.01 US dollars per share.

The board of directors proposed changing each trading unit traded on the Stock Exchange from 8,000 existing shares to 10,000 new shares after the share capital reduction and refinement take effect.

After the share capital reduction, refinement and change in each lot trading unit comes into effect, the company proposes to issue a maximum of 70,1405 million shares at the subscription price of HK$0.38 per share offering (assuming there is no change in the number of shares issued on or before the record date), according to the benchmark that 1 share is issued for every 3 new shares held by eligible shareholders at the end of the business period on the record date, up to about HK$26.7 million (assuming that the number of shares offered is fully subscribed).

If all subscriptions are obtained, the maximum estimated maximum proceeds and net proceeds from the stock offering will be up to approximately HK$26.7 million and HK$24.9 million respectively. The company intends to use the net proceeds from the stock offering to repay related debts, settle expenses related to debt restructuring, and use the Group's general working capital.