HK Stock Market Move | FICUS TECH (08107) rose more than 18% and entered into a subscription agreement with Arena Business Solutions Global SPC II, Ltd.

FICUS TECH (08107) rose by over 18%, as of the time of writing, it had risen by 18.03%, reaching 0.72 Hong Kong dollars, with a trading volume of 889,700 Hong Kong dollars. On the news front, FICUS TECH announced that on March 3, 2025, the company entered into a subscription agreement with investors (Arena Business Solutions Global SPC II, Ltd), giving the company the right to issue and sell shares to the investors for up to a maximum of 100 million US dollars (equivalent to approximately 780 million Hong Kong dollars). According to the announcement, the main reason for entering into the subscription agreement is to obtain flexible and substantial sources of funding. The company can receive up to 100 million US dollars from the investors. The equity credit facility arrangement provides the company with the necessary financial resources to support its working capital needs, general corporate purposes, and growth opportunities. The equity credit facility arrangement also provides great flexibility, allowing the company to request advances as needed, rather than drawing down the entire financing at once, thus avoiding significant and immediate dilution. By arranging the timing of advances based on the prevailing stock price and funding requirements, the company can ensure continued access to funds regardless of market conditions to support efficient operations and strategic planning. By choosing to pay commitment fees in the form of committed equity shares rather than cash, the company can retain cash to address other critical operational needs or investment opportunities.