The board of ASIAN CITRUS (00073) has put forward a proposal for a rights issue, it was announced.
The plan involves issuing up to 44.7016 million rights shares on the basis of three new shares for every one existing share held by eligible shareholders on the record date, with a subscription price of HK$1.38 per rights share.
This initiative aims to raise a maximum of approximately HK$61.7 million before accounting for costs and expenses.
The subscription price represents a discount of roughly 28.13% compared to the closing price of HK$1.92 per share as recorded on the stock exchange on the last trading day.
The company anticipates that the maximum net proceeds from the rights issue will be around HK$58.5 million.
The intended allocation of the net proceeds is as follows: approximately 57.3% will be used for the procurement of temperature-controlled equipment, specifically passive cold storage units, and cold chain solutions.
About 18.8% of the funds are earmarked for the repayment of loans and accrued interest.
An estimated 5.1% is designated for purchasing raw materials and agricultural consumables.
The remaining 18.8% of the net proceeds will be allocated for general working capital purposes.
Comments