HK Stock Market Move | REM (00601) fell more than 27% during the trading day, and plans to offer a discount of approximately 43.88% based on a "2 shares for 1" basis for rights issue.

REMT (00601) fell more than 27% intraday, as of the time of publication, it was down 27.55% to 0.142 Hong Kong dollars, with a turnover of 1.0427 million Hong Kong dollars. On the news front, REMT issued an announcement proposing a rights issue based on a ratio of 1 rights share for every 2 existing shares held at a subscription price of 0.110 Hong Kong dollars per rights share. The rights issue aims to raise not less than approximately 32.59 million Hong Kong dollars (assuming that the number of existing shares issued on or before the record date has not changed) but not more than approximately 33.24 million Hong Kong dollars (excluding the exercise or conversion of any outstanding convertible bonds on or before the record date, excluding MX convertible bonds). The subscription price represents a discount of approximately 43.88% compared to the closing price of the shares on the last trading day on the Stock Exchange. Eligible shareholders have the right to apply for additional rights shares beyond their respective allotment under the rights issue. The rights issue is expected to raise approximately 29.78 million Hong Kong dollars in net proceeds, with around 30% to be used for upgrading and refurbishing production facilities in Xinjiang Tengxiang, 40% for promoting the growth of the group's existing magnesium business, and the remaining 30% allocated for supporting ongoing administrative and operational expenses.