LUXXU GROUP (ASX: 01327) has announced the signing of a placement agreement with a placing agent on June 4, 2026.

Under the agreement, the company conditionally agrees to use its best efforts to place up to 43,130,900 new shares through the agent to no fewer than six placees, who are independent third parties such as professionals, institutions, or other investors.

The placement price is set at HK$0.50 per share, which is equal to the closing price quoted on the stock exchange on the date of the placement agreement, indicating no discount.

The shares will be allotted and issued under a general mandate.

Assuming full subscription, the maximum of 43,130,900 placement shares represents approximately 20.00% of the company's issued share capital as of the announcement date and about 16.67% of the enlarged issued share capital after the placement.

The gross proceeds from the placement, if fully subscribed, are estimated to be approximately HK$21.6 million, with net proceeds after deducting commissions and related expenses expected to be around HK$20.8 million.

The company intends to allocate the net proceeds as follows: approximately 91.3% will be used to repay the group's outstanding bonds, including interest expenses, and the remaining 8.7% will serve as general working capital to improve the group's cash position, thereby supporting the establishment and enhancement of its existing and future business operations.