JOLIMARK (HKEX: 02028) has announced a proposed placement of up to 122.6 million new shares, according to a company filing.

The placement shares represent approximately 16.66% of the company's existing issued share capital and about 14.28% of the enlarged share capital post-placement.

The placement price is set at HKD 0.72 per share, representing a discount of roughly 19.10% to the closing price of HKD 0.890 per share on June 29.

Assuming the placement is fully subscribed, the gross proceeds are expected to be approximately HKD 88.3 million, with net proceeds estimated at around HKD 86.4 million.

The board intends to allocate the net proceeds from the placement for the following purposes: (i) approximately 21.99% or HKD 19 million will be used for employee salaries and benefits, expected to be fully utilized within 12 months after completion; (ii) about 46.76% or HKD 40.4 million is earmarked for procurement costs related to daily operations, including raw materials for producing printers, medical equipment, and other products, also expected to be fully utilized within 12 months post-completion; and (iii) roughly 31.25% or HKD 27 million will be allocated to repay the group's bank loans, anticipated to be fully utilized within 3 months after the placement is completed.