PACIFIC LEGEND (08547) plans to make a 2-for-1 rights issue, expecting to raise approximately HK$28.1 million net.

Pacific Legend (08547) announced that the Board of Directors proposed a rights issue ratio of 1 share for every 2 shares held, at a subscription price of HKD 0.10 per share. Through this rights issue, the company aims to raise approximately HKD 29.6 million by issuing up to 296 million new shares to eligible shareholders. Only eligible shareholders are allowed to subscribe to the rights issue, and it will not be offered to excluded shareholders. The subscription price represents a premium of approximately 25.00% over the closing price of HKD 0.0800 per share as reported on the announcement date on the Hong Kong Stock Exchange. If fully subscribed, the net proceeds from the rights issue are estimated to be approximately HKD 28.1 million after deducting all necessary expenses. The company plans to utilize the net proceeds for the following purposes: around 34% for repayment of a loan related to an unsecured payable bond of RMB 10 million subscribed by an independent third party, with an expiry date of March 27, 2026. It is anticipated that this loan will be refinanced or extended before the completion of the rights issue, and the net proceeds will be used for the repayment of the refinanced or extended loan thereafter. Based on the company's current financial plan and subject to negotiations with the relevant lenders and prevailing market conditions, the company intends to seek a short-term extension of the payable bond upon maturity, or refinance it with other short-term loans to meet its short-term funding needs. The company also plans to repay the refinanced or extended loan after receiving the net proceeds from the rights issue; approximately 18% for rental expenses (including accrued rent expenses); around 18% for the Dubai project (which involves providing furniture for staff dormitories in the UAE for a minimum of three years); about 7% for opening a new retail store in Hong Kong; and the remaining approximately 23% for general operating funds of the group, including payment of salaries, supplier payments, and other operational and administrative expenses.