Simplicity Holdings (08367) has announced that after trading hours on October 8, 2026, the company entered into a placing agreement with a placing agent.

Under the agreement, the placing agent has agreed, on a best-effort basis, to place up to 19.32 million new shares to no fewer than six independent placees at a price of HK$0.158 per placing share.

The maximum number of placing shares is 19.32 million, representing approximately 19.99% of the company's total issued share capital of 96,649,980 shares as at the date of the announcement, and approximately 16.66% of the company's total issued share capital as enlarged by the placing.

The placing price of HK$0.158 per placing share represents a discount of approximately 18.56% to the closing quotation of HK$0.194 per share on GEM on October 8, 2026, the date of the placing agreement.

The net proceeds from the placing are expected to be approximately HK$3.02 million, assuming the placing shares are fully placed and after deducting all relevant expenses, and will be used as general working capital of the group.