Hong Kong-listed HUANXI MEDIA (01003.HK) announced a share placement to Chen Rong of approximately 548 million shares, representing about 13.04% of the enlarged share capital. The placement price was set at HK$0.3 per share, a 22.08% discount to the closing price of HK$0.385 on November 11.

Following this placement, Chen Rong (excluding warrants) will become the largest single shareholder with a stake of approximately 13.04%.

Additionally, the company issued warrants to Chen Rong at HK$0.01 per warrant. If fully exercised, up to approximately 1.889 billion new shares could be issued, potentially increasing Chen Rong's shareholding to 40%.

The gross proceeds from the share placement amount to approximately HK$164.54 million, while the warrants could raise an additional HK$18.89 million. The total net proceeds are estimated at around HK$182.8 million.

The funds will be allocated as follows: approximately HK$100 million for enhancing the company's advanced technology capabilities, HK$50 million for film and TV series copyright investments, and HK$32.8 million for general working capital.