Zhitong Finance App News, Zhonglian Development Holdings (00264) announced that on October 27, 2026, the company plans to sell convertible bonds with a total subscription principal amount of HK$30.24 million to no less than 6 undertakers (they and their ultimate beneficial owners are all independent third parties).
Based on the initial exchange price of HK$2.16 per share (subject to adjustment), if the share exchange rights are fully exercised, the company will allocate and issue up to 14 million shares, which is equivalent to about 2.95% of the total number of shares currently issued by the company, and approximately 2.87% of the total number of shares already issued by the company which were expanded immediately after all convertible bonds were converted according to the initial exchange price.
Assuming that all convertible bonds are successfully placed by the placement agent, the net proceeds from the placement are estimated to be approximately HK$29.45 million. The company intends to use the net proceeds to supplement general working capital and enhance the financial position of the Group, of which (a) approximately HK$11.76 million will be used to purchase materials, equipment and expenses related to leather manufacturing and/or extended cleaning services for leather and motor vehicle engines, and other trade operations; (b) approximately HK$10.39 million will be used as the Group's general working capital, including (but not limited to) payment of rent, employee costs, professional expenses and other general administrative and operating expenses; (c) approximately HK$4.38 million will be used to pay outstanding accounts receivable; (d) approximately HK$4.38 million will be used to pay outstanding accounts receivable; (d) approximately HK$2.92 million will be used to pay outstanding payables; (d) approximately HK$2.92 million Will be used for a new Business development opportunities or initiatives.