Future Machine (HKG:1401) said it raised net proceeds of about HK$138 million from its rights issue after all 500 million rights shares, including those unsubscribed during the offer period, were fully placed to investors, according to a Monday bourse filing.

Shares of the firm were up 5% in Tuesday morning trade.

The company said 309.2 million rights shares, or 61.8% of the total, were subscribed through valid applications.

The remaining 190.8 million unsubscribed shares were successfully placed to six independent investors at HK$0.28 each, equal to the subscription price.

Future Machine said the net proceeds will be used primarily to fund additional working capital for its mobile phone and related products business, production line expansion, R&D, and M&A initiatives, with a focus on artificial intelligence investments.

Trading in the fully paid rights shares is scheduled to begin on Nov. 12, the filing said.