KINETIC DEV (01277) proposes to discount approximately 12.74% to issue 170 million shares, with net proceeds of approximately HK$309 million.

KINETIC DEV (01277) announced on June 3, 2026 (after trading hours) that the company has entered into a placing agreement with an exclusive placing agent. Under this agreement, the company has conditionally agreed to place 170 million shares at a placing price of HK$1.85 per share to no fewer than 6 placees (who are independent third parties). The placing price of HK$1.85 represents a discount of approximately 12.74% from the closing market price of HK$2.12 per share on the date of the placing agreement. The number of shares to be placed represents approximately 2.01% of the total number of shares issued as of the announcement date. The estimated net proceeds of approximately HK$309 million from the placing are intended to be used primarily for (i) procurement for the mining and transportation business of its subsidiary in South Africa; (ii) working capital for MC Mining Limited, a non-wholly owned subsidiary of the group in which the company holds a 51% stake; (iii) equipment procurement and operating expenses related to the group's gold ruby project in Sierra Leone; and (iv) general working capital and other corporate purposes for project development. The specific use of the proceeds will be determined by the board of directors or authorized persons based on the company or group's operational needs, taking into account relevant regulatory opinions received, and may be adjusted accordingly.