GRAPHEX GROUP (06128.HK): placing of 188.26 million shares completed, net proceeds HK$8.9 million, warrant exercise price cut to HK$0.05
NewTimeSpace News: GRAPHEX GROUP (06128.HK) announced that reference is made to its announcements dated 13 October 2026 and 16 October 2026 in relation to the placing of new shares under a general mandate. The conditions set out in the placing agreement have been fulfilled and completion of the placing took place on 27 October 2026, with all 188,260,000 placing shares successfully placed by the placing agent to not less than six placees at the placing price of HK$0.050 per placing share. To the best knowledge, information and belief of the Directors having made all reasonable enquiries, the placees and their respective ultimate beneficial owners are independent third parties, and none of the placees has become a substantial shareholder of the Company upon completion.
According to the announcement, the placing shares represent approximately 19.99% of the existing issued share capital of the Company immediately before completion and approximately 16.67% of the issued share capital as enlarged by the allotment and issue of the placing shares immediately upon completion. Net proceeds from the placing, after deduction of commission and other expenses, amounted to approximately HK$8.9 million, of which approximately 25.3% (about HK$2.25 million) will be allocated to staff remuneration, approximately 33.7% (about HK$3 million) to settle the fees payable to the depository on the termination of the Company's American Depository Shares programme, approximately 33.7% (about HK$3 million) to legal and other professional expenses, and the remaining approximately 7.3% (about HK$0.65 million) to other miscellaneous administrative and operating expenses. The Company expects to fully utilise the net proceeds in accordance with the above allocation within six months from the date of completion.
In addition, as at the date of the announcement, the Company has 157,507,352 warrants outstanding with an aggregate principal value of US$3,455,000, equivalent to approximately HK$26,776,250 at the fixed exchange rate of HK$7.75 to US$1, each entitling the registered holder to subscribe for one share at the exercise price of HK$0.17 per share. Immediately upon completion, the adjusted exercise price of the outstanding warrants was reduced to HK$0.05 per share and the adjusted number of warrant shares became 535,525,000; save for such adjustments, all other terms and conditions of the outstanding warrants remained unchanged.
