SYNERTONE (01613) plans to conduct a rights issue on a "1 share for every 2 shares held" basis, with a maximum net fundraising of approximately HK$1.19 billion.

SYNERTONE (01613) announced that the Board of Directors suggests raising a maximum of approximately HK$121 million through a rights issue, with each eligible shareholder entitled to two rights shares for every one share held on the record date, at a subscription price of HK$0.135 per rights share for a total of 8.97 billion rights shares. The rights issue is only open to eligible shareholders, and ineligible shareholders are not allowed to participate. Assuming that the total issued share capital of the company remains unchanged on or before the record date, the 8.97 billion rights shares to be issued under the rights issue terms would be equivalent to 200% of the total issued share capital of the company as of the date of this announcement, and approximately 66.67% of the enlarged total issued share capital after the rights shares are issued. Assuming that there are no changes to the total issued share capital of the company on or before the record date, and all rights are fully subscribed, the net proceeds from the rights issue (after deducting estimated expenses) are estimated to be up to approximately HK$119 million. The Board plans to utilize the proceeds as follows: approximately 74.9% or around HK$89.3 million will be allocated for fulfilling identified genuine needs for expanding the group's control systems business and building intelligence business, and approximately 25.1% or around HK$30 million will be allocated for general working capital and other corporate purposes as mentioned in the plan.