VIXTEL TECH secures funding for strategic growth and expansion

VIXTEL TECH is proceeding with a placement of new shares under a general mandate, aiming to raise approximately HK$99.72m in net proceeds. This capital infusion is crucial as the company navigates macroeconomic headwinds and accelerates technology changes, addressing ongoing operating losses and working capital needs that restrict internal cash generation.

The proceeds will be primarily allocated to three key areas: approximately HK$65,000,000 for the development of new APM Projects by December 31, 2027; approximately HK$20,000,000 for scaling and market expansion of virtual asset services in overseas markets, particularly the UAE, by December 31, 2027; and approximately HK$14,720,000 for general working capital through December 31, 2027. This includes staff costs, raw materials, and other operational expenses.

The placing is expected to enable prudent capital management and support sustainable operations by funding key technology projects and market expansion initiatives.