Shenzhen SMM Lithium to raise funds, strengthen new energy sector presence

Shenzhen SMM Lithium Battery Technology Co. plans to issue up to 187,573,269 A-shares to specific investors, including its controlling shareholder, Shenzhen SMM Group Co., along with strategic investors CALB Group Co. and Huayou Holding Group Co. The issuance price is set at 17.06 yuan per share, not less than 80% of the average trading price over the 20 trading days prior to the pricing benchmark date. This initiative seeks to raise up to 3.2 bn yuan to replenish working capital and repay debts, enhancing the company’s financial health and competitiveness in the rapidly expanding new energy vehicle and energy storage markets.

Shenzhen SMM Group Co. will subscribe for 66,090,269 shares (1.1275 bn yuan), CALB Group Co. for 55,392,731 shares (945 m yuan), and Huayou Holding Group Co. for 66,090,269 shares (1.1275 bn yuan). This transaction, which includes subscriptions from its controlling shareholder and two strategic investors who will become significant shareholders (5.02% and 5.99% respectively), constitutes a related party transaction. The shares will be subject to a 36-month lock-up period.

The company's board of directors has approved the share issuance and strategic cooperation agreements, which are subject to approval by the general meeting of shareholders, the Shenzhen Stock Exchange, and the China Securities Regulatory Commission. This capital injection and strategic partnerships are expected to deepen industry chain collaboration, leverage market resources, and improve the company's governance and operational efficiency, supporting its goal of becoming a leading global lithium new energy materials enterprise.