MOG DIGITECH (01942) announced that the Board proposes to increase the company's authorized share capital from HKD 20 million, divided into 2 billion shares with a par value of HKD 0.01 each, to HKD 200 million, divided into 20 billion shares with a par value of HKD 0.01 each. This will be achieved by creating an additional 18 billion unissued shares with a par value of HKD 0.01 each. The proposed increase in authorized share capital is subject to approval by shareholders through an ordinary resolution at an extraordinary general meeting.
Furthermore, the Board proposes, subject to the fulfillment of the conditions for the rights issue and the effectiveness of the capital increase, to raise gross proceeds of up to approximately HKD 44.6 million (before expenses) through a rights issue. The issue will involve 686 million rights shares offered at a subscription price of HKD 0.065 per share, on the basis of 1 rights share for every 2 existing shares held by eligible shareholders on the record date. Payment in full is required upon acceptance.
Assuming no changes in the total issued share capital of the company on or before the record date and assuming full acceptance of the rights issue, the maximum net proceeds (after estimated expenses) are expected to be approximately HKD 43.2 million. The Directors intend to allocate the net proceeds as follows: approximately 50% will be used to inject capital into the Group's existing financing services business; and approximately 50% will be allocated for general working capital purposes, including employee-related costs and rental expenses.
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