Grand Ocean Advanced Resources Proposes 7-for-1 Rights Issue
Grand Ocean Advanced Resources (HKG:0065) plans to offer seven rights shares for every one existing share at a subscription price of HK$0.280 per share, according to a Tuesday Hong Kong bourse filing.The company will issue up to 1.72 billion rights shares, assuming no change in its share base before the record date.The rights issue is expected to raise net proceeds of about HK$479.8 million if fully subscribed.The subscription price represents a 9.8% premium to the last closing price of HK$0.255, the filing said.The company will use about HK$353.9 million of the net proceeds for a potential acquisition of a 20% to 40% stake in a coal-mining target, with HK$92.1 million earmarked for upgrading its existing coal mine and HK$20 million for working capital.
