RCG Holdings Limited, an international provider of biometric and RFID products and solution services primarily focused on the Asia Pacific region market, has entered into a subscription agreement with the British Virgin Islands-incorporated company Kelton Capital Group Limited, the main business activity of which is investment in public companies.
Under the terms of this agreement, RCG Holdings Limited agreed to allot and issue to Kelton, and Kelton has agreed to subscribe for an aggregate of 6,450,000 new ordinary shares of HK$0.01 each in RCG at HK$3.10 per share, raising HK$19.995million before expenses. Upon issue and admission of the subscription shares, the enlarged issued share capital of RCG will be 307,923,555 shares. The subscription shares represent approximately 2.14% of the existing issued share capital of RCG Holdings and approximately 2.09% of the issued share capital of the company.
RCG Holdings plans to use the net proceeds of the subscription to fund its research and development activities.