China Wood International Holding Co., Limited announced a non-underwritten rights issue on the basis of one new share for every existing share held on the record date, tentatively set for 13 August 2026.
Key terms • Subscription price: HK$0.077 per rights share, representing discounts of 43.80 % to the last trading day’s closing price and 44.84 % to the five-day average price, but a 5.48 % premium to the audited 31 December 2025 NAV per share of HK$0.073. • Maximum issue size: 986.90 million rights shares, equivalent to 100 % of current issued share capital and 50 % of enlarged share capital if fully subscribed. • Gross proceeds: up to HK$77.00 million; estimated net proceeds after expenses: about HK$74.00 million. • No excess application; any unsubscribed or non-qualifying portions will be placed on a best-effort basis, with any premium over the subscription price returned to relevant shareholders. • The transaction will proceed regardless of subscription level and will reduce in size if undersubscribed.
Use of proceeds The company intends to deploy the HK$74.00 million net proceeds as follows: – HK$34.00 million (46.0 %) for R&D of functional food and beverage products, including equipment, product testing and specialist recruitment. – HK$8.00 million (10.8 %) for marketing and promotion of the new food and beverage line. – HK$6.00 million (8.1 %) for marketing of the existing wood-related business. – HK$26.00 million (35.1 %) for general working capital.
Governance and timetable Because the issue will expand share capital by more than 50 % within 12 months, it requires approval by independent shareholders at an extraordinary general meeting scheduled for 3 August 2026. Controlling shareholder Right Momentum Group Limited, which currently holds 45.82 % of the shares, will abstain from voting.
Subject to approvals and regulatory clearance, nil-paid rights are expected to trade from 18 to 25 August 2026, with the latest acceptance and payment date on 28 August 2026. Fully paid rights shares are slated to begin trading on 16 September 2026.
Shareholding impact If all shareholders take up their entitlements, the controlling shareholder will maintain its 45.82 % stake, and public float will remain at 54.18 %. If no shareholders subscribe and all unsubscribed shares are placed to independent investors, Right Momentum’s stake would fall to 22.91 % while public float would rise to 77.09 %.
Independent review An Independent Board Committee comprising all three independent non-executive directors and Gram Capital Limited as Independent Financial Adviser will evaluate the terms and advise minority shareholders.
Shareholders are advised to exercise caution when dealing in the company’s securities until the rights issue conditions are satisfied.