WINSHINE SCI plans to offer a 23.5% discount on a "1 for 7" rights issue, netting HKD 177 million

WINSHINE SCI (00209.HK) announced a proposed rights issue on the basis of "1 for 7," which will issue up to 1.3 billion shares at a rights issue price of HKD 0.14 per share, representing a discount of approximately 23.5% to the closing price of HKD 0.183 per share on the last trading day. Assuming the rights issue is fully subscribed, the company estimates that the net proceeds from the rights issue will reach approximately HKD 177 million, of which about 66% will be used to repay loans, and the remaining approximately 34% will be used for general working capital.

The board has received an irrevocable commitment from executive director, CEO, chairman of the board, and major shareholder Wang Jingyu and his wholly-owned controlled entity Peak Access, which includes accepting and facilitating Peak Access to accept its provisional allocation of a total of 262 million shares in the rights issue, and that before the completion or expiration of the rights issue, there will be no sale or transfer of shares held by Peak Access in any manner