GRAPHEX GROUP (06128.HK): Proposed Placing of up to 188.26m New Shares at HKD 0.05, Net Proceeds about HKD 8.9m
NewTimeSpace News: On 13 October 2026, Graphex Group Limited (stock code: 06128) announced that it had entered into a placing agreement with CSI Securities Limited as placing agent after the trading session on the same day, to place up to 188,260,000 new shares to not fewer than six placees at HK$0.050 per placing share.
The placing price of HK$0.050 per share represents a discount of approximately 1.96% to the closing price of HK$0.051 per share on the Stock Exchange on 13 October 2026, and a discount of approximately 7.75% to the average closing price of HK$0.0542 per share for the five consecutive trading days immediately preceding the date of the placing agreement. The placing shares represent approximately 19.99% of the existing issued share capital of the Company as at the date of the announcement and approximately 16.67% of the enlarged issued share capital after the placing and issue of the placing shares. The placing shares will be allotted and issued under the general mandate granted by shareholders at the annual general meeting and no further shareholder approval is required; the general mandate will be-utilised to approximately 99.99% upon the allotment and issue of all placing shares.
Assuming all placing shares are successfully placed, the gross proceeds will be approximately HK$9,413,000 and the net proceeds, after deducting the commission and other expenses, will be approximately HK$8,900,000, equivalent to a net issue price of approximately HK$0.0472 per placing share. The Directors intend to use the net proceeds to repay debts and supplement the Group's working capital. The Company said that, given its principal business of developing and processing graphene products, mainly graphite anode materials for lithium-ion batteries used in electric vehicles, energy storage systems and other applications, as well as short-range electric vehicle manufacturing and landscape design, the placing offers an opportunity to strengthen its financial position and raise additional funds for business operations without any interest burden, at a relatively low cost and in a relatively rapid manner, while broadening its capital and shareholder base and potentially improving share liquidity. The placing is conditional upon, among other things, the Stock Exchange granting the approval for the listing and trading of the placing shares, to be satisfied on or before 5:00 p.m. on 3 November 2026, and will complete on the third business day after the conditions are satisfied.
