Zhitong Finance App News, Shetu Holdings (08392) issued an announcement. The board of directors proposed to implement the share consolidation on the basis of merging every 10 issued and unissued existing shares with a face value of HK$0.01 per share into 1 consolidated share with a face value of HK$0.10 per share.
After the share merger comes into effect, the company proposes to raise up to HK$19 million (before deducting expenses) by issuing up to 100 million shares for each share of the offered share at the subscription price of HK$0.19 per share of the consolidated share held on the record date.
Assuming that all shares are subscribed, the net proceeds from the offering after deducting expenses are estimated to be approximately HK$17.1 million. It will be used in the following proportion: (i) Approximately 40% of the net proceeds will be used for marketing and promotion expenses for the aromatherapy diffuser product line. These expenses will include collaborating and interacting with key opinion leaders (KOLs) through multiple channels, as well as carrying out other marketing programs, including digital advertising, brand content creation, promotional activities and consumer engagement programs aimed at increasing brand awareness, increasing product exposure, and driving end customer sales conversion for the new aromatherapy diffuser series. The Group expects to fully utilize the net proceeds in this regard by the first quarter of 2028; (ii) approximately 30% of the net proceeds will be used for R&D and production activities related to aromatherapy diffusers. This includes product design iterations, material certification, prototype verification, mold manufacturing, quality assurance testing, and various production-related expenses required to make the aromatherapy diffuser series products ready for mass production. The Group expects to fully utilize the net proceeds in this regard by the first quarter of 2028; (iii) approximately 20% of the net proceeds will be distributed to the Rehabilitation and Renovation Company's office in Shenzhen, China. The Group expects to fully utilize the net proceeds in this regard by the first quarter of 2028; (iv) Approximately 10% of the net proceeds will be used for the Group's general working capital needs to pay employee salaries, office rent, professional service fees and other daily administrative and operating expenses of the Group. The Group expects to fully utilize the net proceeds in this regard by the first quarter of 2028.