Kingwell Group (HKG:1195) has agreed to issue up to 100 million warrants to 3 subscribers at HK$0.01 per warrant, raising HK$1 million. The net proceeds of HK$900,000 will be used as the general working capital and for future development of the group.

Upon the exercise of the subscription rights attaching to the warrants in full, a maximum of 100 million new shares will be issued and allotted, representing 6.2% of the issued share capital of the company as enlarged by the issue and allotment of the new shares. The subscription per new share will be HK$0.29. The aggregate of the subscription price per new share and the issue price per warrant, being HK$0.3, represents a premium of 5.3% over the closing price of HK$0.285 per share yesterday. The additional net proceeds of HK$29 million are intended to be used as general working capital and for future development of the group.

The subscribers include Sun Kin Chung, Fan Kun and Lei Jie, who will subscribe for 40 million warrants, 30 million warrants and 30 million warrants respectively.