Yuan Longping seeks $165m for debt, operations

Yuan Longping High-Tech Agriculture (SZSE:000998) is seeking to raise approximately 1.2 billion RMB (approximately $165 million USD) through a private placement of shares to its controlling shareholder, China National Seed Group Co., Ltd. (CNSG). According to a filing with the Shenzhen Stock Exchange that included a recommendation letter from China Securities Co., Ltd., the funds will be used to repay bank loans and replenish working capital. The company plans to issue no more than 152,477,763 shares at a price of 7.87 RMB per share. This move aims to optimize the company's capital structure, improve its financial health, and enhance its ability to invest in research and development, operations, and industrial integration. Shares purchased through this private placement will be subject to a lock-up period of 18 months from the end of the issuance. The offering remains subject to shareholder and regulatory approvals.