China Sci-Tech Industrial Investment Group Limited Announces Results of Rights Issue and Compensatory Arrangements

Strategic Insights -

As of 4:00 p.m. on Monday, June 23, 2025, the total number of valid applications received for the Rights Shares under the Rights Issue amounted to 5, with a total of 36,850,509 Rights Shares subscribed, representing approximately 25.6% of the total number of Rights Shares available for subscription. As a result, the remaining 107,149,491 Unsubscribed Rights Shares, accounting for approximately 74.4% of the total number of Rights Shares offered, were subject to the Compensatory Arrangements. By 4:30 p.m. on Wednesday, July 2, 2025, a total of 107,149,491 Unsubscribed Rights Shares had been successfully placed at the Subscription Price of HK$0.07 per Share to one Placee under the Placing. Consequently, there was no Net Gain available to be distributed to the No Action Shareholders under the Compensatory Arrangements.

Key Takeaways:

  • The Rights Issue became unconditional on July 3, 2025, with the gross proceeds raised amounting to approximately HK$10.08 million and the net proceeds (after deducting estimated professional fees and expenses) amounting to HK$9.2 million.
  • The gross proceeds were utilized for the repayment of outstanding liabilities, with approximately 16.3% (HK$1.5 million) allocated for this purpose, and for general working capital, with approximately 83.7% (HK$7.7 million) allocated for this use.
  • The remaining HK$7.7 million will be applied towards general working capital, including administrative and other expenses, on or before June 30, 2026.

Statistics:

  • Total valid applications received for the Rights Share: 5
  • Total number of Rights Shares subscribed: 36,850,509
  • Percentage of total Rights Shares subscribed: approximately 25.6%
  • Number of Unsubscribed Rights Shares subject to Compensatory Arrangements: 107,149,491
  • Percentage of total Rights Shares un-subscribed: approximately 74.4%
  • Price per Share for successful placement: HK$0.07
  • Gross proceeds raised from Rights Issue: approximately HK$10.08 million
  • Net proceeds (after deducting expenses) from Rights Issue: approximately HK$9.2 million
  • Allocation of net proceeds: HK$1.5 million (16.3%) for liability repayment and HK$7.7 million (83.7%) for working capital
  • Allocation of HK$7.7 million to be used for general working capital by: June 30, 2026

Sources:

  • Reference is made to the prospectus of China Sci-Tech Industrial Investment Group Limited dated June 9, 2025
  • Announcement of the Company dated June 25, 2025, in relation to the Rights Issue
  • The complete document can be viewed at: https://www1.hkexnews.hk/listedco/listconews/sehk/2025/0707/2025070701336.pdf