LESI GROUP (02540) has announced that on May 21, 2026 (after trading hours), the company entered into a placement agreement with a placement agent. Under this agreement, the company conditionally agreed to place, on a best-efforts basis, up to a total of 100 million placement shares to placees, who, along with their ultimate beneficial owners, must be independent third parties not connected to the company or its associates. The maximum of 100 million placement shares under the placement represents 20% of the company's existing issued share capital of 500 million shares as of the announcement date. Upon the allotment and issuance of all placement shares, this would represent approximately 16.67% of the company's enlarged issued share capital, assuming no changes to the company's share capital between the placement agreement date and the completion date. The total par value of the maximum number of placement shares will be US$100,000. The placement price is set at HK$0.700 per share, representing a discount of approximately 14.63% to the closing price of HK$0.820 per share as quoted on the Stock Exchange on the date of the placement agreement. The maximum gross proceeds from the placement are expected to be approximately HK$70 million. The maximum net proceeds from the placement are estimated to be about HK$68.9 million. The company intends to use the net proceeds from the placement for the following purposes: 35% for technology upgrades related to AI short video production and AI advertising technology research and development; 55% for business development aimed at expanding the customer base through the optimization of its media distribution network; and 10.0% for the general working capital of the group. Upon completion, the maximum net price raised per share is estimated to be approximately HK$0.689 per share.