China Isotope & Radiation Corporation (CIRC) saw its shares rise nearly 5% in morning trading, up 4.75% as of press time to HK$12.13, with a turnover of HK$1.33218 million.
Recently, CIRC (01763) issued an announcement regarding the proposed capital increase of its non-wholly-owned subsidiary CNNC Gaotong through a public listing process on the Beijing Equity Exchange. The board of directors has resolved to approve the potential capital increase, which is intended to raise funds corresponding to 17,645,851 newly issued shares of CNNC Gaotong, representing a 20% equity interest.
The potential capital increase must be conducted through a public listing process on an approved property rights exchange, and will be carried out through the Beijing Equity Exchange. Selected investors will enter into a capital increase agreement in accordance with the relevant rules of the Beijing Equity Exchange and applicable Chinese laws and regulations.
The announcement stated that the capital increase aims to meet the funding needs for CNNC Gaotong's future business development and capital expenditures, while introducing strategic investors with relevant industry resources. According to CNNC Gaotong's business development plan, it intends to increase research and development investment in areas such as new radioisotope sources and source-containing equipment during the "15th Five-Year Plan" period, advance the construction of production bases, and gradually extend its existing industrial chain through potential acquisitions.
Given that the above business development plans involve substantial funding requirements and CNNC Gaotong's existing internal resources are insufficient to fully meet the relevant funding needs, this capital increase is expected to help supplement its development funds and optimize its capital structure.
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