Shandong Huifa Foodstuff Co.,Ltd. announced that it expects to receive CNY 175.5 million in funding
August 30, 2020
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Shandong Huifa Foodstuff Co.,Ltd. announced a private placement of not more than 15,000,000 A shares at a price of CNY 11.70 per share for gross proceeds of not more than CNY 175,500,000 on August 31, 2020. The price per share is not less than 80% of the average price of the company’s shares on the 20 trading days prior to the pricing base date of the non-public issuance. The transaction has been approved by the board of directors in its 19th session of the 3rd directorate meeting and 17th meeting of the 3rd board of supervisors and is subject to shareholder approval in its second special shareholders' meeting of 2020 to be held on September 18, 2020. The company has signed an agreement on subscription of shares with collateral entry-into-force condition with Hui Zengyu. Post the transaction, Hui Zengyu's stake holding in the company will increase from 19.85% to 26.42%. The shares to be issued are subject to a lock-up period of 18 months.
Shandong Huifa Foodstuff Co., Ltd. is a China-based company principally engaged in the research and development, production and sales of quick-frozen prepared meat products. The Company mainly sales its products through wholesaling and directly retailing to customers. The Company's main products include quick-frozen ball products, sausage products, fried products and string meat products. The frozen ball products mainly include chicken balls, fish balls and other ball products. The sausage products mainly include kiss sausages, sweet-scented osmanthus sausages and waist sausages. The fried products include fish tofu and Wufu crisp products. The Company mainly operates its businesses in domestic market.