I'm LongbridgeAI, I can summarize articles.GOME RETAIL (493) issued 25.1 billion new shares to two creditors, involving an amount of HKD 377 million, for debt repayment. Investment company Jinboding will acquire a 29.61% equity stake, becoming the major shareholder, while founder Huang Guangyu's shareholding ratio will decrease to 6.74%. GOME stated that this move will help mitigate some debt risks and restore the company's reputation and long-term operations
GOME RETAIL (493) announced that it will issue a total of 25.1 billion new shares to two creditors to settle debts, involving an amount of HKD 377 million. Among them, the investment company Jinboding will acquire a 29.61% equity stake, becoming the major shareholder, while founder and major shareholder Huang Guangyu's shareholding ratio will decrease to 6.74%.
All funds from the share issuance will be used to repay debts
GOME stated that it will issue over 21.61 billion shares to Jinboding at a closing price of HKD 0.015 per share on Friday, and nearly 3.49 billion shares to Taiyue Technology, totaling HKD 377 million, all of which will be used to repay debts. GOME will not receive any cash payments.
GOME: Addressing part of the debt risk
GOME indicated that it has been negotiating with major suppliers, financial institutions, and other creditors regarding the terms of the debt-to-equity agreement. The two companies involved in this debt-to-equity swap are financial or technical service providers acting in the ordinary course of GOME's general and daily business. The company expects this will help partially resolve its debt risk, which will support the restoration of the company's overall reputation and long-term business operations.
After the completion of the share issuance, major shareholder Huang Guangyu's equity will be diluted from 10.28% to 6.74%, Jinboding will acquire 29.61% of the shares to become the major shareholder, while Taiyue Technology will hold 4.78%