Coolpad Eyes HK$56 Million from Rights Issue; Shares Slip 4%

MT Newswires Live15:53

Coolpad (HKG:2369) is proposing a one-for-two rights issue to raise net proceeds of HK$56 million, an Oct. 16 bourse filing showed.

Shares of the smartphone maker were down nearly 4% in Monday afternoon trading.

The company will issue up to nearly 199 million shares at HK$0.30 per share under the issue to qualifying shareholders.

The company is also proposing to change the board lot size for trading to 5,000 shares from 4,000 shares effective Nov. 13.

The company plans to use proceeds for the procurement of AI server hardware and core components, operating expenses, and sales and marketing expenses of its solutions business relating to AI infrastructure, as well as for general working capital.

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