REMT (00601) intends to offer a discount of approximately 43.88% based on a "2 shares for 1 share" basis for rights issue.

REMT (00601) announced that the company proposes to issue rights shares at a subscription price of HK$0.110 per share for every 2 existing shares held, with a target to raise not less than approximately HK$32.59 million (assuming no changes in the number of shares issued on or before the record date) but not more than approximately HK$33.24 million (assuming all outstanding convertible bonds have been exercised or converted on or before the record date, excluding MX convertible bonds). The subscription price represents a discount of approximately 43.88% to the closing market price of HK$0.196 per share on the last trading day on the Stock Exchange. Eligible shareholders have the right to apply for additional rights shares beyond their respective entitlements under the rights issue. The maximum net proceeds from the rights issue are expected to be approximately HK$29.78 million, with around 30% to be used for upgrading and refurbishing production facilities of Xinjiang Tengxiang, 40% for the growth of the Group's existing magnesium business, and the remaining 30% planned to support ongoing administrative and operating expenses.