CMON Limited will launch a non-underwritten rights issue to raise a maximum of HK$150.50 million before expenses.
Key terms • Basis: Three rights shares for every one existing share • Current share base: 61.92 million shares • Rights shares to be issued: 185.76 million (300% of current share capital) • Subscription price: HK$0.81 per share, a 14.74% discount to the last trading day close of HK$0.95 • Trading in nil-paid rights: 13–20 Aug 2026; latest payment/acceptance: 25 Aug 2026 • New shares (fully paid) expected to list: 17 Sep 2026 • Theoretical dilution effect: 15.79%
Use of net proceeds (c.HK$146.20 million) 1. 40% for working capital, mainly staff, distribution and administrative costs over 12 months. 2. 20% to retire outstanding liabilities, including US$2.46 million owed to a director and US$0.39 million advances from employees, plus other short-term payables. 3. 15% earmarked for potential mergers and acquisitions in digital gaming aligned with the group’s tabletop portfolio. 4. 25% for market expansion in Europe and selected Asian markets (Japan, Philippines) and related product development.
Structure and mechanics • The rights issue is non-underwritten; any unsubscribed shares will be placed on a best-efforts basis by Yuen Meta (International) Securities. • Unsubscribed or non-qualifying portions not placed will be cancelled, reducing the issue size. • Net gain from placing premium, if any, will be distributed to shareholders who do not take up their entitlements.
Conditions The offer is subject to listing approval for both nil-paid and fully-paid rights shares and fulfillment of other customary conditions; otherwise, the transaction will lapse.
Rationale Management cites the need to replenish working capital, deleverage, and finance a transition toward digital gaming, while allowing existing shareholders to maintain proportional ownership.
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