CHINA HUAJUN GP (ASX: 00377) has entered into subscription agreements with a group of investors. The agreements, signed on June 26, 2026, after market hours, commit the company to allot and issue a total of 12 million new shares.

The subscription price has been set at HK$1.00 per share. This represents a discount of approximately 21.9% compared to the closing price of HK$1.28 per share on the Hong Kong Stock Exchange on the trading day immediately preceding the date of the subscription agreements.

Assuming no changes to the company's issued share capital between the announcement date and the completion date, the new subscription shares will account for about 14.73% of the existing issued share capital. Following the allotment and issuance, these shares will constitute approximately 12.84% of the company's enlarged issued share capital.

After deducting direct expenses estimated at around HK$100,000, the net proceeds from the subscription are expected to be approximately HK$11.9 million. The company intends to use the net funds raised for debt repayment and to supplement the group's general working capital.