Newsletter summary
Hongjiu Fruit recently announced the termination of the 500 million yuan domestic stock offering plan.Governorofpoker4The original subscribers included four state-owned capital companies. The board of directors believes that the termination of the offering will not have a significant adverse impact on the company's operation and finance.
Text of news flash
[Hong Jiu Fruit terminates nearly 500 million yuan directed offering Plan Chairman Deng Hongjiu faces buyback request] Hongjiu Fruit announced on May 11 that it would cancel its original plan to issue domestic shares. The plan originally involved four state-owned background subscribers: Guizhou China Reclamation, Hunan China Reclamation, Chongqing China Reclamation and Beijing Reclamation.Governorofpoker4The total subscription amount is close to 500 million yuan On April 4, 2023, Hongjiu Fruit signed subscription agreements with Guizhou Zhongken, Hunan Zhongken, Chongqing Zhongken and Beijing Kentuo, which conditionally agreed to subscribe for about 3048.Governorofpoker4.780,000 domestic unlisted common shares at a subscription price of 16 per shareGovernorofpoker4.4 RMB. However, as of March 20, 2024, Hong Jiuguo's share price had fallen to HK $1.74 per share. The subscribers had planned to withdraw from the investment by reducing their holdings in the A-share market. If Hongjiu Fruit fails to complete the A-share listing by December 31, 2025, the subscriber will have the right to require the company to cooperate with the listing of its shares on the Stock Exchange. If this is not achieved, the subscriber may ask Deng Hongjiu, chairman of Hongjiu Fruit, to buy back the target shares. Hong Jiuguo pointed out in the announcement that due to the longer-than-expected implementation cycle, combined with the current capital market situation, the market financing environment and the company's own development needs, after friendly negotiation and careful analysis, the board of directors decided to terminate the issue. and sign a termination agreement with the subscriber. The board of directors of the company believes that the termination of the offering will not have a significant adverse impact on the business operation and financial situation of Hongjiu fruit, and stressed that the move will not harm the interests of the company and shareholders as a whole. Trading in Hong Jiuguo's H shares will be suspended from March 20, 2024 and will continue to be suspended until annual results are announced.
