CHINA WOOD INT (01822) plans to conduct a rights issue based on a "1 for 1" basis, raising a maximum of approximately HK$74 million.

China Wood International (01822) announced that the board of directors proposes to offer 1 share of rights shares for every 1 share held on the record date, at a subscription price of 0.077 Hong Kong dollars per share of rights. The subscription price of 0.077 Hong Kong dollars per share of rights represents a discount of approximately 43.80% compared to the closing market price of 0.137 Hong Kong dollars per share on the last trading day on the Stock Exchange. Assuming that the total number of issued shares remains unchanged from the date of this announcement until the record date (including that day), the company will issue up to a maximum of 986,898,680 shares of rights shares, raising a maximum of approximately 77 million Hong Kong dollars (before deduction of expenses). The estimated net proceeds from the rights issue (after deducting estimated expenses related to the rights issue) will be approximately 74 million Hong Kong dollars. Approximately 46.0% of the net proceeds will be used for the research and development of the group's food and beverage products within 12 months after the completion of the rights issue; approximately 10.8% of the net proceeds will be used for marketing and promotional activities to support the expansion of the group's food and beverage business; approximately 8.1% of the net proceeds will be used for marketing and promotional activities to support the group's wood-related business, including marketing materials, trade fairs, and exhibition costs; and approximately 35.1% of the net proceeds will be used for the group's working capital, including but not limited to operating costs, employee costs, rental expenses, professional fees, and other office expenses.