RiverHill to issue 100 mln new shrs at 0.45-0.60 hkd/shr for GEM listing

HONG KONG (AFX-ASIA) - RiverHill Holdings Ltd said it is proposing to offer 100 mln new shares at an indicative issue price of between 0.45 and 0.60 hkd per share for its listing on the GEM board.

	    Of the total shares offered, 80 mln will be placed out while 20 mln shares will be open to public subscription.

	    In a statement, the company said the public offer will open on May 18 and the stock will be listed on the GEM board on June 1.

	    The offer is expected to raise net proceeds of about 34 mln hkd, based on an issue price of 0.45 hkd per share, the statement said.

	    Of the total funds raised, 6.0 mln hkd will be used for research and development of its global positioning system, global information system and 

remote sensing.

	    About 7.0 mln hkd will be invested in two technological research centres and one data centre, about 7.5 mln will be used to set up a joint-venture 

with  property developers offering virtual reality and digital community management services.

	    About 5.0 mln will be used to set up a joint-venture for the supply and installation of GPS automatic vehicle locators, 2.5 mln will be used to expand its sales network in China.

	    About 1.5 mln hkd will be used for marketing and promotions and the remaining 4.5 mln as general working capital.

	    RiverHill provides applications and solutions, utilising GIS, GPS and remote sensing.

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