China Green (00904) said it proposes to raise about HK$132.6 million to HK$200.7 million through an open offer on the basis of one offer share for every two shares in issue at HK$0.25 apiece.
The subscription price represents a discount of about 49% to the closing price of HK$0.49.
The estimated net proceeds of about HK$128.6 million to HK$196.7 million will be used as to about HK$47 million for the payment of interests of the bonds which will be due in October and the remaining of about HK$81.6 million (based on the minimum amount of net proceeds) will be used to reduce the debt level of the Group and as general working capital of the Group.
It is proposed that with effect from the date of allotment and issue of the offer shares, the board lot size for trading in the shares on the Stock Exchange shall be changed from 3,000 to 6,000.