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China Wah Yan Healthcare ( (HK:0648) ) just unveiled an announcement.
China Wah Yan Healthcare plans to issue 16,301,841 new shares at HK$0.01 each to creditors as part of a court-sanctioned debt restructuring scheme that became effective in December 2023. The scheme aims to address the company’s deteriorated financial position following a prolonged trading suspension, with the new shares representing about 0.76% of the enlarged share capital.
The issue price reflects a steep discount of 96%–97% to recent market prices and results in a high cumulative dilution level when combined with a prior new share issue, which the company characterizes as a critical rescue measure. Completion of the share issuance remains subject to shareholder approval of a specific mandate at an extraordinary general meeting and the Stock Exchange’s approval for listing, after which the shares will be distributed to creditors via a trustee within five business days.
More about China Wah Yan Healthcare
Average Trading Volume: 2,198,309
Technical Sentiment Signal: Sell
Current Market Cap: HK$637.8M
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