Modern Innovative Digital Tech boosts subsidiary's cash with HK$29.3m share placement

Modern Innovative Digital Technology Company Limited announced an update on its placing of up to 300,000,000 shares under a general mandate. The gross proceeds are expected to be approximately HK$30,000,000, with net proceeds, after deductions, estimated at HK$29,300,000. These funds are mainly allocated to ChaoShang Securities Limited, a licensed corporation requiring strengthened financial resources by early 2025 to cover projected operating expenses, as requested by the Securities and Futures Commission.

As of 30 September 2025, ChaoShang Securities' cash and bank balances stood at HK$11 million, deemed only marginally sufficient. The overall Group's total cash and bank balance was approximately HK$55 million, though HK$24 million from mainland subsidiaries is not easily repatriated. The remaining HK$20 million includes HK$14 million for securities trading and HK$6 million earmarked for Hong Kong operating expenses such as staff costs, rental, and professional fees.

The specific breakdown for the HK$29.3 million net proceeds includes HK$15 million for staff salaries, HK$10 million for office rent and rates, and HK$4.3 million for other general operating expenses, all projected to be utilized by June 2027. The company emphasizes that the placing is subject to conditions and may not proceed to completion, advising shareholders and investors to exercise caution.