ARTGO HOLDINGS (03313) proposes a rights issue on a "1 for 3" basis to raise a maximum net proceeds of approximately HK$200 million.

ARTGO HOLDINGS (03313) announced that the Board proposes, subject to the fulfillment of the conditions for the rights issue, to raise gross proceeds of up to approximately HK$205 million through a rights issue, on the basis of 3 rights shares for every 1 existing share held by qualifying shareholders on the record date, at a subscription price of HK$0.48 per rights share, by way of a rights issue of 427 million rights shares, payable in full on acceptance. Assuming there will be no change in the total number of issued shares of the Company on or before the record date and the rights issue is fully accepted, the net proceeds from the rights issue are estimated to be up to approximately HK$200 million. The Directors intend to apply the net proceeds as follows: approximately HK$162 million, representing approximately 80.95% of the net proceeds, will be used to repay the Group's liabilities; and approximately HK$38.16 million, representing approximately 19.05% of the net proceeds, will be allocated for general and corporate administrative purposes. This allocation includes Directors' remuneration, wages and salaries, legal and professional fees, and rental expenses.