HUABANG TECH(03638) plans to conduct a 2-for-1 rights issue at a maximum net proceeds of approximately HKD 55.2 million.

HUABANG TECH (03638) announced that the company proposes to raise no more than 56.825 million Hong Kong dollars from shareholders through a rights issue. The rights issue will not be underwritten and involves the issuance of up to 315.7 million shares at a subscription price of HKD 0.18 per share. Shareholders will be entitled to one rights issue share for every two existing shares held on the record date. The estimated net proceeds from the rights issue are approximately 55.2 million Hong Kong dollars. Assuming full subscription of the rights issue, the company intends to use the net proceeds for the following purposes: approximately 35%-40% of the net proceeds will be used to expand the group's food trading and financial services businesses or make investments related to these businesses; up to approximately 30%-35% of the net proceeds will be used for strategic opportunities; and any remaining net proceeds will be used for the general working capital of the group.