FLOWING CLOUD (06610) recommends increasing the authorized capital and proposing a rights issue on a basis of "1 for 4".

FLOWING CLOUD (06610) announcement, the board of directors proposes to increase the authorized share capital of the company from USD 50,000 (divided into 250 million shares with a par value of USD 0.0002 per share) to USD 400,000 (divided into 2 billion shares with a par value of USD 0.0002 per share) by issuing an additional 1.75 billion shares with a par value of USD 0.0002 per share. The increase in authorized share capital will take effect on the same day as the ordinary resolution to increase the authorized share capital is passed at the extraordinary general meeting of shareholders. In addition, the company proposes to offer rights shares to eligible shareholders at a ratio of four rights shares for every existing share held at a subscription price of HKD 0.6 per rights share, through the issuance of up to 520 million rights shares (assuming no change in the total issued share capital of the company as of the record date) to raise approximately HKD 312.1 million in total proceeds (before costs and expenses). The rights issue is non-underwritten and is only open to eligible shareholders, with ineligible shareholders unable to participate. Assuming no change in the total issued share capital of the company as of the record date and full acceptance of the rights issue, the estimated maximum net proceeds from the rights issue (after deducting all estimated expenses) is approximately HKD 306.8 million.