Asia-Pac Financial Investment (08193) has announced a board proposal for a rights issue, offering two rights shares for every one existing share held as of the record date. The rights shares, priced at HK$0.10 each, will involve the issuance of 560 million shares, targeting total gross proceeds of up to approximately HK$56 million, assuming no further share issuance or buybacks occur before the record date.

This rights issue is exclusively available to eligible shareholders, with excluded shareholders, if any, not permitted to participate. The subscription price of HK$0.10 per share represents a premium of approximately 20.5% over the closing price of HK$0.083 per share quoted on the Stock Exchange of Hong Kong on the last trading day.

If fully subscribed, the estimated net proceeds, after deducting related costs and expenses, will be approximately HK$53.9 million, again assuming no additional share issuances or buybacks before the record date. The company plans to allocate the net proceeds from the rights issue as follows: (i) to repay the promissory note, including accrued interest; (ii) to partially settle other payables and amounts due to a director; and (iii) to serve as general working capital for the group.