Hong Kong Stock Movement | Shanghai Little South Country (03666) surged over 20%, planning a roughly 16.7% premium rights issue to raise HKD 12.4 million

TickTrade Finance APP has learned that Shanghai Little South Country (03666) is up over 20%. As of the time of writing, it has increased by 20.83%, trading at HKD 0.029, with a turnover of HKD 1.0055 million.

In terms of news, Shanghai Little South Country announced that it has entered into a placing agreement with a placing agent to sell up to approximately 442 million new shares at HKD 0.028 per share, raising up to HKD 12.4 million. The group stated that the offering price is about a 16.7% premium over the HKD 0.024 closing price on February 16. The new shares represent approximately 14.3% of the enlarged share capital and will be placed to no fewer than six independent placees. It is expected that no single placee will become a major shareholder. The net proceeds from the offering are intended for general working capital.

Notably, on the evening of February 10, Shanghai Little South Country issued a clarification that the operation of its ten restaurants under the Shanghai Little South Country brand has been temporarily suspended to facilitate the group’s strategic restructuring. Additionally, the company is processing refunds for customer deposits, and funds from prepaid cards are held in designated escrow accounts, which are available for refund. The board members will continue to uphold their commitments and ensure that all deposits and prepaid card funds are properly refunded to customers.