Ashurst advised China Qidian Guofeng Holdings Limited on HK$30.26 million share placement

Ashurst represented China Qidian Guofeng Holdings Limited (HKSE: 1280) (the "Company") in relation to a share placing under general mandate.

On 14 January 2024, the Company and Yayue Longte Co., Limited as the subscriber (the "Subscriber") entered into a subscription agreement, pursuant to which the Company has conditionally agreed to allot and issue, and the Subscriber has conditionally agreed to subscribe for 43,855,948 shares (the "Subscription Shares") at the price of HK$0.69 per share (the "Subscription Price") (the "Subscription").

The Subscription Shares represent: (a) approximately 20% of the existing issued share capital of the Company of 219,279,744 ordinary shares as at the date of this announcement; and (b) approximately 16.67% of the issued share capital of the Company as enlarged by the allotment and issue of the Subscription Shares (assuming that there is no change in the issued share capital of the Company other than the issue of the Subscription Shares).

The gross proceeds from the Subscription are expected to be approximately HK$30.26 million and the net proceeds, after deduction of the related expenses, will be approximately HK$29.96 million, representing a net Subscription Price of approximately HK$0.68 per Subscription Share. The Company intends to apply such net proceeds for general working capital of the Company and its group and general corporate expenses.

Lead partner Frank Bi commented: "The deal was launched under an uncertain market condition and the successful completion of the deal demonstrated the investor's long term investment interests in the Company. We are pleased to have assisted our client in the completion of the placement."

The transaction was led by partner Frank Bi, supported by Christy Li, Chris Ou, Ivana Gu, Li Chen and Chen Chen.