EQS Newswire / 16/10/2023 / 08:54 UTC+8
Unlocking Success: Raffaello’s Help in REMT’s Rights Issues
Tycoon designated placing agent Raffaello makes a move again to raise capital for Rare Earth Magnesium Technology Group Holdings Ltd (“REMT”) (HKSE:601). Amid market downturn, REMT has announced a rights issue plan, with Raffaello Securities acting as the underwriter.
The subscription price for the rights share is HK$0.08, but with Raffaello’s effort, the stock price has surged to HK$0.3, much higher than the subscription price.
This can be attributed to the trend of stock prices rising steadily after Raffaello facilitates capital raising for companies, and REMT’s magnesium business is in high demand in the electric vehicle industry.
Raffaello’s clientele is indeed star-studded. Previously, Raffaello Securities has successfully served as a placing agent for China Wantian Holdings Limited (“China Wantian”) (HKSE:1854). The stock price of China Wantian soared from HK$0.4 to HK$1 as of October 12, 2022. Following the rights issue, Raffaello Securities also helped Wantian attract investments from Henderson’s Co-Chairman Lee Ka-kit, China Asset Management Co. Ltd, and Franklin Templeton Alternative Investment Asia Pacific Structured Equity Fund.
REMT’s business is also in line with the booming trend in the electric vehicle supply chain. Magnesium alloys, which are used in electric vehicles, significantly reduce the weight of the vehicle body. Therefore, companies that possess magnesium materials and technology often become long-term partners for electric vehicle manufacturers. In addition to its application in transportation, 3C electronics, and aerospace sectors, uses of magnesium alloy new materials are extensive as it is widely used in electric vehicles, biomedicine, 5G base stations, magnesium building modules, magnesium-based hydrogen storage materials, magnesium batteries, and other fields. Through this rights issue, REMT aims to nurture the growth of its existing magnesium business, including supporting the production costs and facilitating the purchase of raw materials. This rights issue could potentially be the tipping point for the company to ignite profitability.
With the great potential of the company supported the Tycoon Designated Placing Agent, the company remains absolutely positive to receive capitals from large funds through the rights issue.
16/10/2023 Dissemination of a Financial Press Release, transmitted by EQS News.
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