PACIFIC LEGEND (08547) announced that the Board of Directors has proposed a rights issue on the basis of 1 rights share for every 2 existing shares held, with a subscription price of HK$0.10 per rights share. The rights issue aims to raise gross proceeds of approximately HK$29.6 million through the issuance of up to 296 million rights shares. The rights issue is open for subscription by qualified shareholders only and will not be offered to excluded shareholders. The subscription price represents a premium of approximately 25.00% over the closing price of HK$0.0800 per share as quoted on the Stock Exchange on the date of this announcement. Assuming full subscription, the net proceeds from the rights issue, after deducting all estimated expenses, are estimated to be approximately HK$28.1 million. The Company intends to use the net proceeds from the rights issue for the following purposes: approximately 34% will be used to repay borrowings related to an unsecured bond with a principal amount of RMB 10 million due on March 27, 2026, subscribed from an independent third party. This borrowing is expected to be refinanced or extended prior to the completion of the rights issue, and the net proceeds will subsequently be used to repay this refinanced or extended borrowing. Based on the Company's current funding plan and subject to negotiations with relevant lenders and prevailing market conditions, the Company intends to address its short-term funding needs upon the bond's maturity by either seeking a short-term extension of the existing bond or refinancing it with other short-term borrowings. The Company also plans to repay the refinanced or extended borrowing after receiving the rights issue proceeds; approximately 18% will be used for rental expenses (including accrued rental expenses); approximately 18% will be allocated to the Dubai project, which involves furnishing staff accommodation in the UAE for a period of at least three years; approximately 7% will be used to open a new retail store in Hong Kong; and the remaining approximately 23% will serve as the Group's general working capital to cover salaries, supplier payments, and other operational and administrative expenses.