Sichuan Hongda gains regulatory approval for targeted stock issuance

Sichuan Hongda Co., Ltd. announced that it has obtained approval from the China Securities Regulatory Commission (CSRC) for its application to issue stocks to specific objects, according to the registration draft released today. The approval, document number 1228, greenlights the company to proceed with its targeted stock issuance, a move intended to bolster the company's capital structure and address liquidity concerns. The issuance is planned for a maximum of 609,600,000 shares, not exceeding 30% of the total shares prior to the issue. It is priced at CNY 4.68 per share. The proceeds will be allocated towards debt repayment and supplementing working capital. Sichuan Development Holding Co., Ltd, which currently holds 23.93% of shares, plans to acquire all stocks issued. Subject to a 36-month lock-up. The approval is valid for 12 months from the date of registration.