HK-listed Neptune Group Limited has proposed to consolidate every 10 issued shares into one consolidated share.
The company in its announcement to the Hong Kong Stock Exchange says it proposes to raise not less than HK$96.9 million by issuing no less than 280,812,225 Offer Shares, and not more than HK$100.5 million by issuing no more than 237,357,225 Offer Shares at a Subscription Price of HK$0.42 per Offer Share.
Neptune Group said its board proposed to conduct the share consolidation because of the recent trading price and board lot value of the Exiting Shares, which was at HK$0.062 on the Last Trading Day.
The Open Offer will only be available to Qualifying Shareholders, says the VIP gambling investor, and all transfers of shares with the relevant share certificates must be lodged by Wednesday, 25 May, 2016.
The group also warned that any Qualifying Shareholders who do not take up the Offer Shares should note that their shareholding in the company will be diluted.
According to the announcement, the group’s board intends to apply the net proceeds (approx. HK$94.1 million) from the Open Offer to develop and operate the group’s money lending business.
“As stated in the interim report of the Company for the six months ended 31 December 2015, the Company will continue with its business diversification strategy and explore new business, including money lending,” said the announcement.