China Wacan Group proposes significant capital increase, new share scheme

China Wacan Group Company Limited is seeking shareholder approval to significantly increase its authorized share capital from HK$40,000,000 (400,000,000 shares) to HK$120,000,000 (1,200,000,000 shares). This proposed increase involves the creation of an additional 825,600,000 shares and aims to provide the company with greater flexibility for future fundraising and business growth. As of the announcement date, 374,400,000 shares were in issue.

In addition to the capital increase, the company proposes to adopt a new share scheme and terminate its existing 2019 share option scheme. This move comes in response to amendments to Chapter 17 of the listing rules, effective from 1 January 2023, which necessitate revisions to existing equity incentive frameworks.

Both the capital increase and the adoption of the new share scheme, along with the termination of the 2019 share option scheme, are subject to approval by shareholders via ordinary resolution at an extraordinary general meeting (EGM). The board believes these changes are in the best interests of the company and its shareholders.