Shareholders of Guan Chao (HKG:1872) have approved a four-for-one rights issue to raise gross proceeds of HK$172.8 million, a Friday bourse filing said.
The vehicle importer will issue a maximum of 432 million shares, representing around 80% of its issued share capital, at HK$0.40 apiece.
The company will use proceeds from the issue to expand its motor vehicle business, develop its anion exchange membrane (AEM) water electrolysis business, expand sales and service network and marketing, and for general and corporate administrative purposes.
Shares of the company were down nearly 8% in recent trade.
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