RISECOMM GP (01679) is planning to implement a share capital restructuring and will conduct a rights issue based on a "1 for 5" ratio.

RISECOMM GP (01679) announces that the board of directors has proposed to implement a share capital reconstruction and fundraising activities, involving share consolidation, increasing the authorized share capital, and a rights issue. The board of directors proposes to consolidate the shares, with a basis of every 5 shares of HK$0.001 each consolidated into 1 share of HK$0.005 each. After the share consolidation takes effect, the board of directors proposes to increase the authorized share capital by issuing 800 million new consolidated shares, increasing the company's authorized share capital from HK$1 million (comprising of 200 million consolidated shares) to HK$5 million (comprising of 1 billion consolidated shares). After the share consolidation and increase in authorized share capital take effect, the board of directors proposes to raise up to approximately HK$128 million through a rights issue, with the basis being that eligible shareholders will be entitled to subscribe for 5 rights issue shares for every 1 consolidated share held on the record date, at a subscription price of HK$0.5 per rights issue share, for a total of 2.557 billion rights issue shares. Assuming that there will be no changes in the total number of issued shares as of the record date, and that all rights issue acceptances are received, the estimated net proceeds from the rights issue are expected to be up to approximately HK$125.7 million. The directors plan to allocate these proceeds as follows: approximately 80% towards repaying the group's current liabilities, especially those expected to be due within the next twelve months; and approximately 20% towards the group's general business and administrative operational expenses, including employee salaries of approximately HK$22.9 million, rental expenses of approximately HK$560,000, and business development expenses of approximately HK$430,000, all to support the group's ongoing business activities.