HONG KONG, Sept 30, 2022 – (ACN Newswire) – HG Semiconductor Ltd (6908.HK) is very happy to announce that it has officially entered right into a subscription agreement with Mr. Zhu Gongshan, the Founder, Chairman and Executive Director of GCL Technology Holdings Ltd (GCL; 3800.HK) concerning the Investment Agreement on 4 August 2022.
Pursuant to the Investment Agreement, the Group has decided to issue, and Mr. Zhu has decided to 60 million Shares Subscription and 60 million Warrants Subscription. Because that the homework examinations have already been completed, and that Mr. Zhu is fairly satisfied with the outcomes of the examinations, he’ll take part in the Shares Subscription and Warrants Subscription through his designated beneficially owned entity Profit Act Limited. Upon completion of the Shares and Warrants Subscription, Mr. Zhu can be the major strategic shareholder of the Group.
As at 30 September 2022, the Group has 573,019,000 shares in issue. Pursuant to the Share Subscription Agreement, the 60 million subscription shares represent approximately 10.47% of the prevailing issued share capital of the Group. Following the deduction of relevant costs and expenses, the web arises from the Shares Subscription are estimated to be approximately HK$180 million. The web price per subscription share upon the completion of the Shares Subscription is estimated to be approximately HK$3.00 per subscription share. Furthermore, assuming full exercise of the subscription rights mounted on the warrants, the 60 million warrant shares represent approximately 10.47% of the prevailing issued share capital of the Group, as the gross and net arises from the Warrants Subscription are estimated to be approximately HK$220.8 million. The utmost net price per warrant share upon full exercise of the subscription rights mounted on the warrants is estimated to be approximately HK$3.68 per warrant share.
The Group intends to utilize the maximum arises from the Shares Subscription and the Warrants Subscription of around HK$400.8 million for the development of its gallium nitride (GaN) business. The completion of the Shares Subscription and Warrants Subscription are at the mercy of the satisfaction and/ or fulfilment of certain conditions precedent, and the Group will convene a fantastic general meeting (EGM) to get a particular mandate from shareholders for the allotment and problem of the Shares.
Mr. Zhu may be the Founder and Executive Director of GCL Technology Holdings Limited. He was an associate of the 12th National Committee of the Chinese People’s Political Consultative Conference (CPPCC) and happens to be an associate of the 12th Jiangsu Province Committee of the CPPCC, the chairman of the Global Green Energy Industry Council, the vice chairman of the Global Innovation Centre, the chairman of Asian Photovoltaic Industry Association, the deputy director of the Green and Low Carbon Development Promotion Committee of China Enterprise Confederation, the executive vice president of the power Storage and Electric Vehicle Branch of China Electricity Council. Through the years, Mr. Zhu has been mixed up in fields of power photovoltaic, gas, new energy vehicle operations and semiconductor sectors etc. Meanwhile, Mr. Zhu includes a great influence in Xuzhou; with all major strategic deployment of GCL Group rooted in Xuzhou and were only available in Jiangsu.
Previously, HG Semiconductor also entered right into a strategic cooperation framework agreement on 7 September 2022 with Golden Concord Group Limited (“Golden Concord Group”), a discretionary trust with Mr. Zhu Gongshan and his family as beneficiaries, with the intention to determine close cooperation in application of gallium nitride (GaN) power chips in the fields of new energy, including Golden Concord Group or its subsidiaries will undoubtedly be involved with equity of the Group or its subsidiaries to determine in-depth cooperation. HG Semiconductor and Golden Concord Group will set up a domestic new energy jv (the “JV Company”) to utilize the use of GaN chips in neuro-scientific new energy, including however, not limited by technologies and equipment on charging/exchanging batteries, energy storage technology and related equipment and distributed solar inverters.
The Group provides tech support team to the JV Company and jointly develop application products predicated on silicon-based power chips and third-generation semiconductors. Mr. Zhu’s investment in HG Semiconductor through his family trust and the signing of the strategic cooperation framework agreement with the Group aren’t just a recognition into the future development potential of the third-generation semiconductor business, but additionally demonstration of his confidence in the strategic development of the Group. The completion of the investment agreement signifies that the Group has formally established a detailed partnership with Golden Concord Group and can further develop its integrated industrial chain in the third-generation semiconductor arena and achieve rapid development of production capacity and products.
After nearly 2 yrs of business transformation, the Group has generated a comparatively prominent advantage in neuro-scientific GaN power semiconductors and new energy sector. With the completion of the Subscription Agreement with Mr. Zhu Gongshan and leveraging on his background because the major strategic shareholder of the Group, the Group expects that Mr. Zhu can (i) coordinate the sources of the brand new energy industry and form strategic synergy with the Group’s third-generation semiconductors (especially power chips) to create complementary industrial resources; (ii) use his money and business network to aid the Group in the rapid development of production capacity and products; (iii) assist the Group to work closely with local governments to boost the policies and supports for the third-generation semiconductor industry; and (iv) use their own experience functioning and management to aid the Group to develop its talents, operations, technology, in addition to research and development.
With the evolution of the technological revolution, the semiconductor industry has been deeply built-into the brand new energy industry. For future years of mass energy system, the third-generation semiconductor GaN will play a core role and serve as a bridge between photovoltaic and mass energy systems. The management of the Group believes that the industrial sources of Golden Concord Group are anticipated to create vast application opportunities for HG Semiconductor, enabling the Group to help expand accelerate the development of GaN technology and application in neuro-scientific new energy. The Shares Subscription and Warrants Subscription represent an excellent chance for the Group to improve additional capital for the its GaN business development, thereby enhancing the Group’s research and development capabilities and moving towards the purpose of becoming a built-in device manufacturing (“IDM”) enterprise with semiconductor design and manufacturing because the core, and also the integration of manufacturing, testing, and sales. Because of the strong demand for high-tech semiconductor products in both domestic and overseas markets, in conjunction with the promotion of national policies, the Group expects its GaN business development to cultivate steadily.
About HG Semiconductor Limited
HG Semiconductor Limited (6908.HK) is especially engaged in the semiconductor product business in China, like the design, development, manufacturing, subcontracting services and sales of light-emitting diode (LED) beads and a fresh generation of semiconductor gallium nitride (GaN). The Group is focused on accelerating its research and development and expansion in the use of GaN-related products, having an aim to turn into a leading semiconductor company with the integration of design, manufacturing and sales of semiconductor chips, along with providing total solutions with higher efficiency and competitive system cost.
For additional information, please visit www.hg-semiconductor.com.
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