China Health Technology Group Holding Company Limited (China Health Tech) has completed its non-underwritten rights issue and associated placing, achieving full subscription of the 205.85 million new shares on offer.
The rights issue, conducted on the basis of two rights shares for every one existing share held on the record date, garnered valid acceptances for 58.92 million shares, equal to 28.62% of the total available. To place the remaining shares, the company’s placing agent ran a best-effort placing between 17 June and 6 July 2026. All conditions precedent were satisfied, and on 26 August 2026, 146.93 million placing shares (71.38% of the offer) were successfully allocated to at least six independent placees at HK$0.25 per share.
Aggregate gross proceeds from the combined exercise reached HK$51.50 million, translating into net proceeds of approximately HK$50.00 million after expenses. The company plans to deploy the funds as follows: 1. HK$22.00 million (44%) to expand its ginseng plantation through acquisitions of forests and related marketing initiatives; 2. HK$18.00 million (36%) to invest in medical aesthetics, including equipment purchases and facility setup; and 3. HK$10.00 million (20%) for general working capital such as salaries and corporate expenses.
Post-transaction, China Health Tech’s issued share capital has increased from 102.92 million shares to 308.77 million shares. Public shareholders now hold 97.39% of the enlarged share base, with the new placees accounting for 47.58%. The largest existing shareholder, Ms. Huang Hou, retains 2.61% of the company, down from 7.83% prior to the capital raise.
The completion of the rights issue and placing concludes the company’s latest funding initiative, positioning it to accelerate growth in both its ginseng cultivation and medical aesthetics businesses while bolstering liquidity for ongoing operations.
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