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.