Haisco plans private share placement to fund R&D and boost liquidity

Haisco Pharmaceutical Group’s board of directors approved a revised plan for a non-public issuance of A-shares, intending to raise up to yuan 1,245.2567 million. This capital will primarily fund new drug R&D projects (yuan 965.2567 million) and supplement working capital (yuan 280.00 million). The plan aligns with China's supportive policies for innovative drug development and Haisco's strategy to expand its product pipeline across various therapeutic areas such as metabolism, respiratory, anesthesia, and oncology.

The issuance involves up to 70 million shares, not exceeding 30% of the company's current total share capital. The pricing will be no less than 80% of the average trading price over the 20 trading days prior to the pricing reference date. The funds are expected to enhance the company's capital strength, improve liquidity, and reduce the asset-liability ratio, while potentially diluting immediate returns per share.

The board also approved measures to mitigate potential dilution, including strengthening capital management, optimizing corporate governance, and implementing a robust dividend policy. The issuance is subject to shareholder approval, Shenzhen Stock Exchange review, and China Securities Regulatory Commission registration.