GUOEN HOLDINGS (08121) plans to offer a 24.21% discount on a "1-for-4" basis for its rights issue, aiming to raise approximately HK$40.4 million.

GUOEN HOLDINGS (08121) announced that the company proposes a rights issue of up to approximately 120 million shares at a ratio of "1 for 4", with a subscription price of HK$0.36 per share, representing a discount of 24.21% to the closing market price of HK$0.475 per share on the last trading day on the Stock Exchange of Hong Kong. The maximum net proceeds from the rights issue are expected to be around HK$40.4 million. The company intends to use the net proceeds from the proposed rights issue for the following purposes: (i) around HK$8.3 million for repayment of shareholder loans; (ii) around HK$12 million for the establishment of an Artificial Intelligence (AI) department, development of AI functions, and application in the group's media and marketing businesses; (iii) around HK$12 million for any future collaboration/investment opportunities; and (iv) around HK$8.1 million for the group's future working capital.