KWAN ON HOLDINGS (01559) announced that the company proposes to issue a maximum of approximately 934.6 million rights shares on the basis of "2 for 1" at a subscription price of HK$0.07 per rights share. This represents a discount of approximately 17.65% compared to the closing price of HK$0.0850 per share on the Hong Kong Stock Exchange on the last trading day. After deducting related expenses, the net proceeds from the rights issue are estimated to be up to approximately HK$63.62 million. Approximately 70.7% of the funds will be used to repay the group's liabilities; approximately 15.7% will be allocated to develop the group's existing businesses (including use as working capital for the group's new construction projects, such as costs for conducting feasibility studies, expenses paid for acquiring professional technical services and in-depth local knowledge and experience to assist the group in launching projects, and project-related costs); and the remaining balance of approximately 13.6% will be used for general working capital purposes.