JOLIMARK (02028) proposes rights issue on a 2-for-1 basis to raise up to approximately HK$321 million net

JOLIMARK (02028) announces that the Company proposes to conduct a rights issue on the basis of one rights share for every two shares held on the record date, at a subscription price of HK$0.750 per rights share, to raise gross proceeds of up to approximately HK$322 million by issuing 429 million rights shares to qualifying shareholders (assuming no change in the number of issued shares on or before the record date). The rights issue will be offered only to qualifying shareholders and will not be offered to non-qualifying shareholders (if any). The subscription price is HK$0.750 per rights share, representing a discount of approximately 52.68% to the closing price of HK$1.585 per share as quoted on the Stock Exchange on the last trading day. The maximum net proceeds are estimated to be approximately HK$321 million (assuming no change in the number of issued shares on or before the record date). After deducting the expenses relating to the rights issue, the estimated net subscription price per rights share will be approximately HK$0.748. The Company intends to apply the net proceeds to the development and operation of the AI server system integration business, of which (i) approximately 89.04% will be used for the cost of procuring raw materials, parts and components to assemble final products according to the specifications agreed with customers for each project; and (ii) approximately 10.96% will be used for other expenses, including approximately HK$14.38 million for employee salaries and welfare expenses; approximately HK$9.88 million for sales and promotion expenses; approximately HK$7.44 million for administrative expenses; and approximately HK$3.46 million for research and development expenses.