SATU HOLDINGS (08392) plans to implement a "10-into-1" share consolidation, followed by a rights issue on a "1-for-1" basis.

SATU HOLDINGS (08392) announces that the board recommends a share consolidation on the basis that every 10 issued and unissued existing shares of HK$0.01 each be consolidated into 1 consolidated share of HK$0.10 each. Conditional upon the share consolidation becoming effective, the company proposes a rights issue on the basis of 1 rights share for every 1 consolidated share held on the record date, issuing up to 100 million rights shares at a subscription price of HK$0.19 per rights share to raise gross proceeds of up to approximately HK$19 million (before expenses). Assuming the rights issue is fully subscribed, the net proceeds from the rights issue after deducting expenses are estimated to be approximately HK$17.1 million, to be applied as follows: (i) approximately 40% of the net proceeds will be used for marketing and promotion expenses for the aromatherapy diffuser product line. Such expenses will include collaborating and engaging with key opinion leaders (KOLs) through multiple channels, as well as carrying out other marketing initiatives, including digital advertising, branded content creation, promotional activities and consumer engagement programs, aimed at enhancing brand awareness, increasing product exposure and driving end-customer sales conversion for the new aromatherapy diffuser series. The group expects to fully utilize the net proceeds in this respect by the first quarter of 2028; (ii) approximately 30% of the net proceeds will be used for research and development and production activities related to the aromatherapy diffusers. This includes product design iterations, material certification, prototype validation, mold manufacturing, quality assurance testing, and various production-related expenditures required to bring the aromatherapy diffuser series products to mass production readiness. The group expects to fully utilize the net proceeds in this respect by the first quarter of 2028; (iii) approximately 20% of the net proceeds will be allocated to the restoration and renovation of the company's office in Shenzhen, China. The group expects to fully utilize the net proceeds in this respect by the first quarter of 2028; (iv) approximately 10% of the net proceeds will be used for the group's general working capital requirements, to pay employee remuneration, office rent, professional service fees and other daily administrative and operating expenses of the group. The group expects to fully utilize the net proceeds in this respect by the first quarter of 2028.