REACH NEW HLDGS (08471) plans to increase its share capital and conduct a rights issue on the basis of 1 for 3.

REACH NEW HLDGS (08471) announced that the company proposes to increase its registered capital, and to conduct a rights issue on the basis of 3 new shares for every 1 share held on the record date. The company suggests that by issuing an additional 900 million unissued shares at a nominal value of HKD 0.2 each, the registered capital will be increased from HKD 20 million (divided into 100 million shares at a nominal value of HKD 0.2 each) to HKD 200 million (divided into 1 billion shares at a nominal value of HKD 0.2 each). This increase in registered capital will take effect from the date of the special shareholders' meeting, after the shareholders pass an ordinary resolution. Once the increase in registered capital takes effect, the company proposes to raise funds by issuing up to 220.7 million rights issue shares at a subscription price of HKD 0.2 per rights share on the basis of 3 new shares for every 1 share held on the record date, with the total amount raised expected to be approximately HKD 44.1 million (assuming the number of issued shares remains unchanged on or before the record date). The net proceeds from the rights issue are estimated to be about HKD 43.1 million.