CMON(01792): Subscription shares not delivered and funds not received or take legal action and seek other financing avenues.

CMON (01792) announces that, regarding the subscription of new shares under general authority, the subscribed shares are issued in physical form and kept by the company, and have not been delivered to subscribers at all critical times. This is because as of the date of this announcement, the company has not yet received the net proceeds of HK$10.4 million from the subscribers. As of the date of this announcement, these subscribed shares have not been deposited into the Central Clearing System, and since the related shares are held by the company, the transfer of subscribed shares has not occurred. The company has been in communication with subscribers from time to time regarding the total cost of the subscription. As the subscribers have delayed payment for more than six months, the board believes that appropriate action should be taken to collect the total cost of the subscription through enforcement of the subscription agreement and/or cancellation of the subscribed shares. The company has been seeking legal advice on the appropriate actions needed to enforce the subscription agreement or cancel the subscribed shares, which may include applying to the court for an order or judgment to cancel the subscribed shares. As of the date of this announcement, the company has received verbal confirmation from the subscribers stating their willingness to cooperate with the company and cancel the subscribed shares. Therefore, the company is currently seeking legal advice on potential methods for cancelling the subscribed shares, rather than taking enforcement actions, to save time and costs. As the subscribed shares may be cancelled, the company is seeking alternative fundraising methods to increase its general working capital, with the same purpose as the planned use of the proceeds from the subscription as disclosed in this announcement. Given that the subscribed shares may be cancelled, the financial position and operations of the group will not be significantly adversely affected.