China Health Technology Group Holding Company Limited (CN HEALTH TECH) has unveiled a rights issue aimed at raising up to HK$51.50 million before expenses.
The company will offer up to 205.85 million new shares on the basis of two rights shares for every one existing share held on the record date of 22 May 2026. The subscription price is set at HK$0.25 per rights share, representing: • a 20.63% discount to the HK$0.315 closing price on the last trading day (27 March 2026); • a 7.98% discount to the theoretical ex-rights price of HK$0.272; and • a 54.79% discount to the latest reported unaudited net asset value per share of HK$0.553 as at 31 December 2025.
Net proceeds are estimated at about HK$50.00 million after HK$1.50 million in expenses, translating into a net subscription cost of approximately HK$0.24 per share. Allocation of the funds is as follows: • HK$22.00 million (44%) – acquisition of additional ginseng plantation land and related marketing; • HK$18.00 million (36%) – investment in the medical aesthetics sector; • HK$10.00 million (20%) – general working capital.
The issue is non-underwritten. Any rights shares not taken up will be placed on a best-efforts basis by Tiger Faith Securities Limited; unplaced shares will simply not be issued, reducing the final fundraising size.
Assuming full take-up, the company’s issued share capital will rise from 102.92 million to 308.77 million shares, with the theoretical dilution effect calculated at 13.76%, below the 25% threshold stipulated by Listing Rule 7.27B.
Because the rights issue will expand the share base by more than 50% within 12 months, independent shareholder approval is required. An extraordinary general meeting is scheduled for 12 May 2026. Key trading dates include last cum-rights day on 13 May 2026, nil-paid rights trading from 28 May to 4 June 2026, and the final acceptance/payment deadline at 4:00 p.m. on 9 June 2026.
The board cautions that completion remains subject to conditions such as Stock Exchange approval and shareholder endorsement. If these conditions are not met, the transaction will not proceed.
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