ASTI resumes trading after being suspended for over three years, completing a placement of 128 million new shares to raise HKD 3.2 million | Lianhe Zaobao

ASTI Holdings, a semiconductor manufacturing equipment manufacturer that has been suspended since July 2022, will resume trading on Thursday (January 22) at 9 AM. The company has also completed the placement of 128 million new shares, raising HKD 3.2 million for business expansion and growth. ASTI Holdings announced on Wednesday (21st) after the market closed that the resumption of trading marks the completion of the company's restructuring and the resolution of regulatory compliance issues. "The company has now established a robust financial foundation, achieving zero debt, laying the groundwork for sustainable growth." As of now, the company has HKD 16.6 million in cash and cash equivalents, as well as HKD 22.3 million in operating funds, with no bank borrowings, providing it with significant operational flexibility. Previously, the company was placed on the watchlist by the Singapore Exchange due to three consecutive years of losses. Since it failed to exit the watchlist by the deadline of June 5, 2022, its shares have been suspended since July 5, 2022. After significant restructuring, ASTI Holdings returned to profitability in the fiscal year 2022. Looking ahead, the company's CEO and Executive Chairman Huang Yaonan said, "We will focus on the future and fully leverage our regained strength to drive innovation, expand markets, and create sustainable value for shareholders. We are well-positioned to seize the opportunities presented by the recovery of the semiconductor market." Further Reading The Straits Times Index Hits New Highs: Analysis: There Are Still Opportunities to Enter the Market in a Stable Economic Environment Asian Tech Stocks Continue to Lead: Local Tech Stocks Welcome Opportunities as the Semiconductor Cycle Turns Up On the other hand, ASTI Holdings completed the placement of 128 million new shares at a price of HKD 0.025 per share, raising a total of HKD 3.2 million. The placement price per share represents a premium of 78.57% compared to the stock price of HKD 0.014 on July 4, 2022, the last trading day before the suspension Of the funds raised, 60% will be used for business expansion; 30% for research and development activities; and the remaining 10% will be used as operating funds. Huang Yaonan said, "For ASTI, this placement activity is of pivotal significance, providing the company with financial flexibility and strategic capability, allowing us to act decisively in pursuing opportunities that align with our long-term development goals." In mid-January this year, Advanced Systems Automation announced plans to make a voluntary conditional acquisition proposal for ASTI, to purchase all ASTI shares at a ratio of two new shares for each share subscribed. The price for each new share is 0.5 cents. However, ASTI must meet three preconditions, including the company must resume stock trading or obtain approval from the Singapore Exchange for the transfer of shares, as well as obtain approval from the Singapore Exchange and shareholders before Advanced Systems Automation will formally make the proposal