Zhe Jiang Taihua New Material Co., Ltd. (SHSE:603055) announced that it has entered into a share subscription agreement of 94,876,660 A shares issued at CNY 5.27 per share for gross proceeds of not more than CNY 500,000,000 on June 5, 2020. The transaction will include participation from individual investors Shi Qingdao for 56,925,996 shares for the proceeds of CNY 300,000,000 and Shen Weifeng for 37,950,664 shares for the proceeds of CNY 200,000,000. The issue price is not less than 80% of the average price in the 20 trading days before the pricing reference date. The shares of the company cannot be transferred within 18 months from the issuance closing date. The transaction was approved by the board of directors of the company in the 22nd meeting of the 3rd directorate. The transaction is subject to the approvals of the shareholders meeting and the China Securities Regulatory Commission.