Shares of LOPAL TECH (02465) have tumbled more than 8% in today's trading session.

At the time of writing, the stock was down 8.14% to HK$12.53, with a turnover of HK$139 million.

The decline follows the company's recent announcement regarding a proposed share placement.

On June 16, the company entered into a placement agreement with joint placing agents.

The agreement involves the issuance of up to 15 million new placement shares at a price of HK$13.09 per share.

This placement price represents a discount of approximately 8.91% compared to the closing price of HK$14.37 per H-share on that day.

Assuming the placement shares are fully subscribed, the net proceeds are expected to be approximately HK$194 million.

The company plans to allocate about 58.69% of the proceeds as general working capital for its Jintan project.

Approximately 41.31% is earmarked for the partial repayment of a loan from China Minsheng Bank, Nanjing Branch.

This outstanding loan has a principal amount of RMB 130 million and is due on August 27, 2026.

The remaining portion of the loan is expected to be settled using the company's existing internal funds.