The Board of Directors of Wanjia Group (00401) has proposed to seek shareholder approval via an ordinary resolution at an extraordinary general meeting to increase the company's authorized share capital. The plan is to add an additional 1 billion unissued shares, thereby raising the authorized capital from HKD 50 million (divided into 1 billion shares) to HKD 100 million (divided into 2 billion shares). Following the effective date of the capital increase and subject to approval by independent shareholders at the EGM, the company intends to execute a rights issue on the basis of 1 rights share for every 1 existing share held on the record date, with a subscription price of HKD 0.08 per rights share. The rights issue involves the issuance of no less than 560 million and no more than 641 million rights shares, aiming to raise gross proceeds of not less than approximately HKD 44.82 million (assuming no change in the number of issued shares before the record date) and not more than approximately HKD 51.28 million (assuming the full exercise of all outstanding share options before the record date, resulting in the allotment and issuance of 80.793 million new shares). The estimated net proceeds from the rights issue are expected to be no less than approximately HKD 40.82 million (assuming no change in the number of issued shares) and no more than approximately HKD 47.28 million (assuming the full exercise of all outstanding options). The company plans to allocate the net proceeds from the rights issue for the following purposes: (i) developing its existing pharmaceutical wholesale and distribution business, as well as its hemodialysis treatment and consulting services business, and for other potential investment opportunities in the medical and healthcare sectors as they arise; (ii) partially settling approximately HKD 5 million of the group's trade and other payables and repaying approximately HKD 8.5 million of a loan payable to a director, including accrued interest; (iii) serving as general working capital for the group (covering items such as salaries, rental expenses, professional fees, and other corporate expenditures).