SANDMARTIN INTL plans to carry out a capital restructuring and implement a rights issue

According to the announcement from SANDMARTIN INTL (00482), the board of directors proposes the following capital reorganization: share consolidation, capital reduction, share split, reduction of share premium, and the amounts arising from the capital reduction and share premium reduction will be used to offset the company's accumulated losses as of the effective date of the capital reorganization, thereby reducing the company's accumulated losses. The remaining balance (if any) will be credited to the company's paid-in surplus account and used by the company in a manner permitted by all applicable laws and company regulations. (i) Share consolidation, whereby every 10 existing shares with a par value of HKD 0.10 will be consolidated into 1 consolidated share with a par value of HKD 1.00 (any fractional shares that may arise from the share consolidation will be cancelled); (ii) Capital reduction, whereby the company's issued capital will be reduced by (a) cancelling any fractional shares of the consolidated shares in the company's issued capital, rounding down the total number of consolidated shares in the issued capital to the nearest whole number; and (b) reducing the par value of each issued consolidated share from HKD 1.00 to HKD 0.10 by cancelling the company's paid-up capital (limited to HKD 0.90 per issued consolidated share at that time); (iii) Share split, whereby immediately following the capital reduction, each unissued consolidated share with a par value of HKD 1.00 in the company's statutory capital will be split into 10 unissued adjusted shares with a par value of HKD 0.10 each; (iv) Reduction of share premium, whereby the total amount credited to the share premium account will be reduced to zero. In addition, the company proposes to conduct a rights issue at a subscription price of HKD 0.75 per rights share, on the basis of 1 rights share for every 1 adjusted share held on the record date, to raise approximately HKD 92.3 million by issuing 123,040,372 rights shares to eligible shareholders, with a maximum net raise of approximately HKD 90.2 million, of which about HKD 69.1 million will be used to repay the principal of loans, and approximately HKD 21.1 million will be used to repay the unpaid interest on Loan B