CMON Limited (CMON) has unveiled plans to raise up to HK$150.50 million through a non-underwritten rights issue, offering shareholders three rights shares for every existing share held on the record date of 3 August 2026.
Key terms • Issue size: up to 185.76 million rights shares (potentially 188.90 million if all outstanding options are exercised). • Subscription price: HK$0.81 per rights share, representing a 14.74% discount to the last trading day closing price of HK$0.95 and a 6.25% discount to the theoretical ex-rights price of HK$0.864. • Capital impact: the offer equates to 300% of current issued shares and will enlarge issued capital to approximately 247.68 million shares (assuming no option exercise and full take-up). • Proceeds and allocation: estimated net proceeds of HK$146.20 million (HK$148.70 million if options are exercised) will be earmarked 40% for general working capital, 20% for repayment of debts and borrowings, 25% for business expansion into existing and new markets, and 15% for potential M&A in the IT gaming sector. • Underwriting: none; any unsubscribed shares will be placed to independent investors under compensatory arrangements via Yuen Meta (International) Securities Limited.
Shareholder safeguards To prevent mandatory general offer obligations and ensure compliance with the public float rule, any oversubscription by qualifying shareholders (except HKSCC Nominees) will be scaled down if necessary. The board has not received commitments from substantial shareholders to take up entitlements.
Timetable highlights (2026) • Last cum-rights trading day: 23 July • Ex-rights trading starts: 24 July • Record date: 3 August • Prospectus despatch: 4 August • Nil-paid rights trading: 6–13 August • Latest payment for rights shares: 18 August • Placement of unsubscribed rights: 26 August–1 September • Expected listing of fully-paid rights shares: 10 September
Governance and approvals Because the offer will expand share capital by over 50% within 12 months, independent shareholders must approve the transaction at an extraordinary general meeting scheduled for 22 July 2026. Directors who together hold 25.01% of current shares—Mr. Ng Chern Ann, Mr. David Doust, and Mr. Frederick Chua Oon Kian—will abstain from voting.
Risk reminder The rights issue is conditional on shareholder approval, regulatory clearance and completion of placing arrangements. Trading in existing shares and nil-paid rights shares carries the risk that the offer may not become unconditional.
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