According to Zhitong Finance APP, Cherish Sunshine (01094) issued an announcement that the Board of Directors proposed to seek the approval of the shareholders to add 4.5 billion shares of unissued common stock through an ordinary resolution at the special general meeting of shareholders, and increase the authorized share capital from HK $50 million (divided into 400 million ordinary shares and 100 million preferred shares with a par value of HK $10 each) to HK $500 million (divided into 4.9 billion ordinary shares and 100 million preferred shares with a par value of HK $10 each).

The company proposes to issue 190 million rights shares through rights issue on the basis of 5 rights shares for each 8 shares held by eligible shareholders on the record date at the subscription price of HK $0.63 per share (about 13.70% discount from the closing price of HK $0.730 per share on October 18), To raise about HK $120 million (assuming that the share capital of the Company has not changed on or before the record date, except for the issuance of 10.769 million new shares for the purpose of cashing in the bonus shares after the special meeting of shareholders of share awards); Or issue 201 million rights shares through rights issue to raise about HK $127 million (assuming that the company's share capital will not change on or before the record date, except for the issuance of 10.769 million new shares and all convertible bonds for the purpose of cashing in the bonus shares after the special general meeting of shareholders of share awards).

The estimated net proceeds from the rights issue are about HK $117 million (assuming that the company's share capital has not changed on or before the record date, except for the issuance of 10.769 million new shares for the purpose of cashing in the bonus shares after the special general meeting of the shareholders of the share award); Or about HK $124 million (assuming that the share capital of the company has not changed on or before the record date, except for the issuance of 10.769 million new shares and all convertible bonds for the purpose of cashing in the bonus shares after the special meeting of shareholders of share awards).

The Group plans to use the net proceeds from the rights issue in the following aspects: about 5% will be invested in the research and development of procurement service software; About 50% will be used for procurement services; About 10% will be used for the Group's trade business to seize the growth opportunities of this segment; About 20% will be invested in office properties in Hong Kong; About 15% will be used to supplement the Group's working capital for general purposes.