Fujing Holdings (HKG:2497) said it agreed to purchase a batch of nursery stock for 36 million yuan, according to a Thursday filing with the Hong Kong bourse.
The agricultural company's shares gained over 35% in morning trade Friday.
The nursery stock comprises 50,657 saplings planted on a parcel of land.
Fujing said it would settle payment for the purchase via the issue of 90.6 million shares priced at HK$0.457 each.
The shares represent 18.13% of the company's issued share capital and 15.34% as enlarged by the sale.