ELEPHANT HLDGS (08635) plans to issue up to 63 million shares at a discount of approximately 15.93%, raising about HKD 11.8 million.

ELEPHANT HLDGS (08635) announced that on July 31, 2026, the company entered into a placement agreement with a placement agent. Under this agreement, the company conditionally agrees to place up to 63 million placement shares at a price of HKD 0.19 per share through the placement agent, on a best efforts basis, to no fewer than six placees (who and their ultimate beneficial owners are independent third parties). The placement shares will be issued and allotted under the general mandate. Assuming that the company's capital structure remains unchanged before completion, the maximum number of 63 million placement shares represents: (i) approximately 13.13% of the company's existing issued share capital of 480 million shares as of the date of this announcement; and (ii) approximately 11.60% of the company's issued share capital of 543 million shares after the placement. The total par value of the maximum number of placement shares under the placement will be HKD 630,000 (calculated at a par value of HKD 0.01 per share). The placement price of HKD 0.19 represents a discount of approximately 15.93% to (i) the closing price per share of HKD 0.226 reported on the Stock Exchange on the date of the placement agreement; and a discount of approximately 19.22% to (ii) the average closing price per share of HKD 0.235 reported on the Stock Exchange over the last five consecutive trading days prior to the date of the placement agreement. Assuming all placement shares are fully placed, the total proceeds from the placement will be approximately HKD 12 million. After deducting all relevant expenses related to the placement (including but not limited to placement commission, legal costs, and professional fees), the estimated net proceeds will be approximately HKD 11.8 million. The company intends to use (i) approximately 20% (about HKD 2.4 million) of the net proceeds for the development of the group's existing AI-driven solution business; (ii) approximately 70% (about HKD 8.2 million) of the net proceeds for the development of the group's AI hardware system integration business, including but not limited to procurement of hardware devices and components, server and cluster integration, AI agent deployment, software adaptation, system optimization and/or related R&D activities; and (iii) approximately 10% (about HKD 1.2 million) of the net proceeds for the group's general working capital.