ZO FUTURE GROUP (02309) plans to grant a discount of approximately 19.83% on the rights issue and the subscription for new shares with a maximum net proceeds of around HK$200 million.

ZO FUTURE GROUP (02309) announced that on April 11, 2025 (after trading hours), the company entered into a placing agreement with the placing agent. The company intends to place up to 37.634 million shares of placing shares to not less than six placing parties at a placing price of HK$1.86 per share. The placing price represents a discount of approximately 19.83% from the closing market price of HK$2.32 per share of the shares on the date of the placing agreement. The maximum net proceeds from the placing are estimated to be approximately HK$69.5 million. On the same day, the company entered into a subscription agreement with Ever Bright Limited. The company intends to issue subscription shares to the subscriber at a subscription price of HK$1.86 per share, with the first batch of subscription shares being approximately 32.258 million shares and the second batch not exceeding 37.634 million shares. Assuming that 37.634 million shares of placing shares are placed, approximately 69.8925 million subscription shares will be issued and allotted, with the maximum net proceeds from the subscription estimated to be approximately HK$129.5 million. The net proceeds from the placing and subscription will be used for the following purposes: approximately 70% for the repayment of the group's debt, and approximately 30% for the group's general working capital. The directors believe that the placing and subscription provide the group with additional financing opportunities for the operation of the business, especially in the development of new energy vehicle business, and will improve the group's liquidity and financial position. The placing also presents an opportunity to expand the company's shareholder base. Considering the recent market conditions and the market price of the shares, the directors believe that the placing and subscription are appropriate and crucial for supplementing the company's cash resources for the stated purposes above, which are essential for promoting the group's long-term success.