SYNERTONE (01613) has announced that its board of directors recommends raising up to approximately HK$121 million through a rights issue (gross proceeds before expenses). The proposed basis allows eligible shareholders to subscribe for two rights shares for every share held on the record date, at a subscription price of HK$0.135 per rights share, issuing a total of 897 million rights shares. The rights issue is exclusively for eligible shareholders, and ineligible shareholders are not permitted to participate. Assuming that the total issued share capital of the company remains unchanged as of the record date, the 897 million rights shares to be issued represent 200% of the company’s total issued share capital as of the date of this announcement, and the enlarged issued share capital post-issuance will be approximately 66.67%. If the issued share capital remains constant before or on the record date, and all rights are accepted, the estimated net proceeds from the rights issue (after estimated expenses) could be as high as approximately HK$119 million. The board plans to allocate the proceeds as follows: about 74.9% or approximately HK$89.3 million will be used to meet the identified genuine needs for expanding the group's control system and building intelligent business; and approximately 25.1% or HK$30 million will be allocated for general working capital and general corporate purposes related to the aforementioned plans.