JIMU GROUP intends to offer a discount of approximately 17.1% to issue 21.6691 million subscription shares.

JIMU GROUP (08187) announced that on November 15, 2024 (after trading hours), the company entered into a subscription agreement with a subscriber. According to this agreement, the company conditionally agreed to issue and allot a total of 21.6691 million subscription shares, while the subscriber conditionally agreed to subscribe for these shares at a subscription price of HK$1.16 per share. The subscription price of HK$1.16 per share represents a discount of approximately 17.1% to the closing price of HK$1.40 per share on the Stock Exchange of Hong Kong on November 15, 2024 (the date of the subscription agreement). The 21.6691 million subscription shares to be issued and allotted under the subscription agreement represent approximately 14.3% of the company's issued share capital as of the date of the announcement, and approximately 12.5% of the enlarged issued share capital of the company after completion of the issuance and allotment of the subscription shares (assuming no change in the company's issued share capital from the announcement date to the completion date, excluding the issuance of subscription shares). The directors believe that the subscription is a good opportunity to raise funds for the group's business operations and to broaden the company's shareholder base. The total proceeds from the subscription are expected to be approximately HK$25.1 million. After taking into account estimated expenses related to the subscription, the estimated net proceeds from the subscription are expected to be approximately HK$24.9 million, equivalent to a net price of about HK$1.15 per subscription share. The company plans to use the net proceeds from the issuance of subscription shares for the following purposes: (1) approximately HK$22.4 million for expanding the group's footwear business, including operating expenses, procurement, and marketing expenses; and (2) approximately HK$2.5 million for the group's general working capital to support and promote the group's existing business and operations.