Gelonghui May 10th, Volcano International Holdings (01715.HK) announcementSgc4slotIn accordance with the special authority granted by shareholders at the special general meeting of the company held on March 27, 2024, up to 18Sgc4slot, 903000 new shares. In view of the recent market price of the shares as quoted on the Stock Exchange, the Board announced that the placing Agent had entered into a termination agreement with the Company and the parties agreed to terminate the previous placing Agreement on 10 May 2024. Therefore, all rights and obligations of the parties under the previous placing Agreement have ceased to be valid with effect from 10 May 2024.

On 10 May 2024, the Company entered into the placing Agreement with the placing Agent, pursuant to which the Company has conditionally agreed to place a maximum of 42310000 placing shares through the placing Agent at a price of HK $0.52 per placing share on an best effort basis to not less than six Placees who are individual, institutional or professional investors (and their ultimate beneficial owners are independent third parties). The placing shares will be allotted and issued under the new Special mandate.

The maximum number of 42310000 placing shares under the placing accounts for about 35.88 per cent of the issued share capital of the company expanded by the allotment and issuance of placing shares. The placing price of HK $0.52 per placing share is approximately 14.8% off the closing price of HK $0.61 per share on the date of the placing Agreement; assuming that all the placing shares are informed of the placing, it is estimated that the total proceeds from the placing and the net proceeds (after deducting the placing commission and other related expenses and professional fees) will be approximately HK $22 million and approximately HK $21 million respectively. The company intends to use the net proceeds from the placing to repay other loans of the Group and to supplement the general working capital of the Group.