Great Wall Terroir Holdings Limited Issues Supplemental Announcement on Share Placing

Key Highlights for Investors

• Placing of New Shares: Great Wall Terroir Holdings Limited (Stock Code: 524) has announced further details regarding its proposed placing of up to 39,385,500 new shares under a general mandate.
• Expected Proceeds: The company expects to raise approximately HK\$18.01 million in net proceeds from the placing.
• Use of Proceeds Detailed: The Board has provided a clear breakdown of how the net proceeds will be allocated to support the Group’s general working capital needs up till October 2027.
• Conditions for Completion: Completion of the placing is still subject to the fulfillment of conditions outlined in the Placing Agreement.
• Governance Update: The announcement also confirms the current composition of the Board of Directors.

Detailed Breakdown of Proceeds

The supplemental announcement provides a detailed allocation of the HK\$18.01 million in net proceeds from the share placing:

• Salaries and Rental Expenses: Approximately HK\$12.0 million will be used to cover staff salaries and rental expenses, which are core operational costs for the Group.
• Professional Fees: Around HK\$2.9 million is earmarked for professional fees, including legal advisory, audit, and company secretarial services. This signals a continued commitment to compliance and corporate governance.
• Debt Repayment: HK\$1.0 million will be allocated for repayment of outstanding debts, indicating the company’s efforts to strengthen its balance sheet and reduce liabilities.
• Operating and Administrative Expenses: Approximately HK\$2.11 million will be used for various administrative costs, such as listing fees, registrar service fees, financial printing, insurance, corporate annual fees, and utilities.

Any unutilized proceeds from the placing will be deposited with licensed commercial banks in Hong Kong as short-term deposits, ensuring prudent cash management.

Important Considerations for Shareholders

• Completion Contingent on Placing Agreement: Shareholders should note that the completion of the share placing is not guaranteed and remains subject to the fulfillment of all conditions set out in the Placing Agreement. Any delay or failure in meeting these conditions could affect the anticipated capital inflow and, consequently, the company’s liquidity and operational plans.
• Potential Share Price Impact: The injection of fresh capital and the associated increase in share capital could materially affect the share price, depending on the market’s perception of the company’s future prospects and the efficient use of proceeds.
• Board Composition: The leadership team remains unchanged, providing continuity in management. The Board consists of three executive directors—Mr. Cheung Siu Fai (Chairman), Mr. Hui Chun Wai Henry, and Mr. Leung Hon Man—and three independent non-executive directors—Mr. Fong Wai Ho, Mr. Chow Hiu Tung, and Ms. Dong Jianmei.
• Currency and Language: In case of inconsistencies, the English version of this announcement prevails over the Chinese version.

What This Means for Investors

The detailed breakdown of the use of proceeds provides greater transparency for shareholders and potential investors regarding the company’s capital management strategy. The focus on maintaining sufficient working capital, upholding corporate governance, and managing debt is viewed positively from a financial health perspective. However, investors should closely monitor the fulfillment of all conditions in the Placing Agreement, as any changes could have direct implications for the Group’s operations and share price.

Disclaimer

The above article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult professional advisors before making any investment decisions. Completion of the placing is subject to certain conditions, and there is no guarantee that the transaction will be finalized as proposed. The Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this report.

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