STOCKWATCH: LifeTec Group sharply lower after share placement

HONG KONG (AFX-ASIA) - LifeTec Group shares were sharply lower this morning, as investors reacted negatively to its share placement, dealers said.	    LifeTec is raising 37 mln hkd from the issue of 142 mln new shares to Best Top Offshore Ltd at 0.275 hkd. The proceeds will mainly be used to set up a new production line for its biogenetic products	    At 11:40 am, LifeTec Group was down 0.04 hkd or 13.55 pct at 0.255, on trade of 168.36 mln shares.	    The Hang Seng Index was down 52.16 points at 12,708.48.	    Kenny Tang, associate director of Tung Tai Securities, said LifeTec is unlikely to benefit from its medical division in the near term, because it is in an early stage of development.	    "LifeTec is originally a toy and gift company ... it bought a drug manufacturer in China a few years ago. It is still at an early stage of development though," he said.	    "Usually, a share placement triggers selling, especially when the issue price is lower that its last traded price," he said.	    Last Friday, LifeTec closed at 0.295 hkd, compared to the issue price of 0.275 hkd. 

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