Freeman Financial Corporation (HKG:0279) has proposed rights issue of 1.885-2.451 billion rights shares on the basis of 2 rights shares for every share held on the record date at HK$0.1 each upon the company's capital reorganization becoming effective, representing a 35.48% discount to the adjusted shares' closing price of HK$0.155 yesterday. The gross and the net proceeds of the rights issue will be approximately HK$188.5-245.1 and HK$181.8-237.8 million respectively.

The company intends to apply the net proceeds from the rights issue towards general working capital and substantially for: (a) providing funding support to the group's securities brokerage business in order to strengthen its brokerage and underwriting capabilities, (b) strategic investments in areas such as financial planning, insurance brokerage and corporate finance services, and (c) investments in marketable securities for potential capital appreciation.

Andrew Liu and Willie International Holdings (00273)have irrevocably undertaken to subscribe for the rights shares on a pro rata basis. Chung Nam Securities Limited and Get Nice Securities Limited will underwrite 1.428-1.617 billion rights shares on a 50:50 basis.