LITIAN PICTURES (09958) has announced a board recommendation to expand its authorised share capital from HK$5 million, currently divided into 500 million shares at HK$0.01 each, to HK$40 million, consisting of 4 billion shares at the same par value, by creating an additional 3.5 billion unissued shares with a nominal value of HK$0.01 per share.
Subject to the authorised capital increase taking effect and approval from independent shareholders at an extraordinary general meeting, the board has proposed a rights issue on the basis of four new shares for every one existing share held, issuing up to 2 billion rights shares at an issue price of HK$0.095 per share, aiming to raise approximately HK$190 million in gross proceeds.
The estimated net proceeds from the rights issue amount to roughly HK$188 million, with around 50.0% allocated to repaying the group's existing debts as well as trade and other payables, approximately 30.0% designated for expanding the company's current operations, including the development and production of films and/or television series, and about 20.0% earmarked to supplement the group's general working capital.
The board has also proposed changing the board lot size for trading its shares on the Stock Exchange from 1,000 shares to 10,000 shares, effective from 9:00 a.m. on Friday, 9 October 2026.
Comments