C ZENITH CHEM (00362) plans to issue new shares with a premium of approximately 13.64%, raising a maximum of approximately HK$57.9 million net.

C ZENITH CHEM (00362) announced that on September 20, 2024, the company has mutually agreed with its placement agent Kingrich Securities Financial Limited to terminate the placement agreement for the issuance of new shares based on special authorization that was set to expire on August 22, 2024. On the same day, the company entered into a new placement agreement with the placement agent, intending to issue up to 600 million shares at a placement price of HK$0.1 per share, to be subscribed by at least six underwriters, representing approximately 30.74% of the enlarged share capital. The placement price represents a premium of approximately 13.64% over the closing price of HK$0.088 per share on September 20, 2024. Assuming all placement shares are fully subscribed, the company expects to raise net proceeds of approximately HK$57.9 million, with HK$50 million to be used to repay the group's debts and interest expenses, and HK$7.9 million to be used for general working capital purposes.