ITC NEOCLOUD (00199) proposes to issue up to 76,923,100 placing shares at a premium of approximately 11.1%

ITC NEOCLOUD (00199) announces that on October 30, 2026, the Company entered into a placing agreement with the placing agent, pursuant to which the placing agent has conditionally agreed, as the Company's placing agent, to use its best efforts to procure not fewer than six placees to subscribe for up to 76,923,100 placing shares at a placing price of HK$0.65 per placing share. The placing shares represent approximately 6.60% of the Company's issued share capital as enlarged by the placing. The placing price of HK$0.65 per placing share represents a premium of approximately 11.1% over the closing price of HK$0.585 per share on October 30, 2026. The Group expects to continue incurring staff costs, rental expenses, payments to suppliers and other daily operating expenses in the coming months. Having considered the payment schedules of such expenses and the potential timing differences between cash receipts from expected business operations and operating cash outflows, the Company considers it necessary to replenish its general working capital in advance and maintain a level of liquidity commensurate with the Group's scale of operations and expected expenses. The placing will provide the Group with an additional source of funding without increasing borrowings or the related interest burden, thereby enhancing its flexibility in managing cash resources and supporting the timely settlement of daily payment obligations and the continuation of its business operations. The Directors believe that the placing provides the Company with an efficient and prudent means of fundraising while broadening its shareholder base and strengthening its financial position. Compared with debt financing, the placing will not give rise to an interest burden and will reduce reliance on leverage, thereby enhancing the Group's financial flexibility and resilience in a changing market environment.