CHK OIL (SEHK: 00632) has entered into a share placement agreement, the company announced.
The agreement, executed with a placing agent after market close on June 5, 2026, involves the potential issuance of up to 87 million new shares.
The placement will be conducted on a best-efforts basis to a minimum of six independent placees at a price of HK$0.21 per share.
The new shares will be issued under the general mandate granted to the board at the company's annual general meeting held on June 27, 2025.
The placement shares represent approximately 10.01% of the company's existing issued share capital and about 9.10% of the enlarged share capital upon completion.
The placing price of HK$0.21 per share represents a discount of roughly 16.0% compared to the closing price of HK$0.25 per share on the date of the agreement.
Assuming the full placement is completed, the gross proceeds are expected to be approximately HK$18.27 million.
After deducting commissions and related expenses, the net proceeds are estimated to be around HK$17.35 million, equating to a net issue price of about HK$0.199 per share.
The company intends to allocate the net proceeds, with approximately 74.9% earmarked for repaying part of the outstanding loan principal owed to Xinhua, and the remaining 25.1% to be used for general business operations and working capital purposes.
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