Magnesium Technology (00601) plans to sell a maximum of 96 million shares at a discount of approximately 19.35% to raise about HK$4.5 million

Zhitong Finance App News, Magnesium Technology (00601) issued an announcement. On August 21, 2026 (after the trading period), the Company entered into a placement agreement with the placement agent. According to this, the Company conditionally agreed to place HK$0.05 per share at an placement price of HK$0.05 (excluding Stock Exchange transaction fees, SFC transaction levies, Central Clearing System share payment fees and brokerage commissions) to no less than 6 undertakers according to the best effort basis through the placement agent. The person and the ultimate beneficial owner must be independent third parties.

The maximum number of shares to be placed under the placement matters (i) approximately 16.20% of the Company's current issued share capital of 593 million shares at the date of this announcement; and (ii) approximately 13.94% of the Company's issued share capital expanded through allotment and issuance of placed shares (assuming there is no change in the total number of issued shares of the Company from the date of this announcement to the date of completion). The placement price is HK$0.05 per share, which is approximately 19.35% off the closing price of HK$0.062 per share as reported on the Stock Exchange on August 21, 2026.

Assuming that all 96 million shares are successfully placed, the total proceeds from the placement will be HK$4.8 million. After deducting placement commissions and other related costs and expenses, the net proceeds from the placement are estimated to be approximately HK$4.5 million. On this basis, the net issue price for each placed share would be approximately HK$0.047. The directors intend to use (i) 50% of the net proceeds from the placement for audit and professional expenses; (ii) 30% of the net proceeds to cover employee costs; and (iii) the remaining 20% to settle trade accounts payable and other payables.