Fanyuan International (02516) plans to discount about 66.67% of shares by issuing a maximum net offering of about HK$72.74 million according to the “5 for 2” basis

Zhitong Finance App News, Fanyuan International (02516) announced that the company proposes to issue 374.4 million shares to eligible shareholders according to the “5 for 2” basis, at HK$0.20 per share, a discount of about 66.67% from the closing price of HK$0.6 per share reported on the Stock Exchange on the last trading day.

The maximum amount of proceeds from the stock offering is expected to be approximately HK$74.88 million, with a net proceeds of approximately HK$72.74 million. Approximately 55.0% will be used to research, develop and improve the artificial intelligence capabilities and automated processing capabilities of the Group's domestic and overseas warehouses; approximately 45.0% will be used to expand the Group's overseas warehousing network in the US. Based on Cope's existing network of seven warehouses in the US, the Group plans to expand its geographical coverage and increase the total floor area of its warehouses to support its business growth, including additional warehouses in Chicago, Houston and Seattle.