Cornerstone Technology Holdings plans to place up to 127 million shares at a discount of approximately 18.57%, raising about HKD 70.06 million net

According to the announcement from Cornerstone Tec Holdings (08391), on October 2, 2025 (after trading hours), the company entered into a placement agreement with the placement agent, under which the company conditionally agreed to place up to 127 million placement shares to no fewer than six placees (who and their beneficial owners must be independent third parties) at a placement price of HKD 0.57 per placement share.

Assuming that the total number of issued shares of the company remains unchanged (excluding the placement shares) from the date of this announcement until the completion date, the maximum of 127 million placement shares would represent approximately 11.41% of the enlarged issued share capital of the company after the placement shares are allotted and issued. The placement price of HKD 0.57 represents a discount of approximately 18.57% to the closing price of HKD 0.70 per share reported on the Stock Exchange on the date of the placement agreement.

Assuming that all 127 million placement shares are fully placed, the total amount raised from the placement and the net proceeds (after deducting all applicable costs and expenses, including commissions and levies) are estimated to be approximately HKD 72.39 million and HKD 70.06 million, respectively. The company intends to use approximately 42.91% of the net proceeds from the placement for general working capital of the group; approximately 37.11% for the group's project capital expenditures; approximately 14.27% for the group's financing costs; and approximately 5.71% for the group's marketing and investor relations expenses