Ozner Water proposed
to issue
317 million new shares to raise HK$537 million
(17th November 2016 – Hong Kong) Ozner Water International Holding Limited
(“Ozner Water” or “the Company”, HKEx stock code: 2014, and its subsidiaries collectively
the “Group”) is pleased to announce that, the Company entered into the
Subscription Agreement with “Glorious Shine Holdings Limited”, the Subscriber,
on 13th November 2016, pursuant to which the Subscriber has
conditionally agreed to subscribe for, and the Company has conditionally agreed
to allot and issue 316,299,950 new Shares. Glorious Shine Capital Limited is
held by the Xiao Family Trust and the discretionary beneficiaries of which
include Mr. Xiao Shu, Chairman and Chief Executive Officer of the Group and
certain of his family members, as a party acting in concert. The Subscription
Price is HK$1.71 per Subscription Share, representing a premium of
approximately 2.40% to the closing price of HK$1.67 per Share as quoted on the
Stock Exchange of Hong Kong on the Last Trading Day. Upon Completion, Mr. Xiao and their associates and concert
parties will be interested in 791,032,150 issued Shares in aggregate,
representing approximately 38.66% of the issued share capital of the Group as
enlarged by the allotment and issue of the Subscription Shares.
The Company intends that the
net proceeds of the Subscription of approximately HK$537,873,000 will be used
as follows: (i) approximately 25% will be used for manufacturing and
installation of water purifying machines; (ii) approximately 25% will be used
for the opening of ‘‘experience stores’’; (iii) approximately 20% will be used
for potential merger and acquisition of targets in the water purification and
air sanitization industries; (iv) approximately 15% will be used for the
building of the distribution network and service platform; and (v)
approximately 15% will be used for sales and marketing activities.
The Board considers that
entering into the Subscription Agreement represents a good opportunity to (i)
raise a substantial amount of additional funds; (ii) improve the financial
position and liquidity; and (iii) provide financial flexibility necessary for
future business development and the capability to capture investment
opportunity as and when it arises.
-END-
About Ozner Water International Limited
OZNER’s two business lines include water purification
and air purification. Different from the traditional one-time sales mode, Ozner
Water adopted a revolutionary business model, which provides water purification
service while charging annual rental, providing a unique advantage in the
market. The Group has established a directly managed service teamover 1000 cities
in 30 provinces in China, and constructed relevant logistics and warehousing
facilities to ensure efficient service and high renewal rate. Ozner Water
originates the “cloud water purification technology”, which enables the Group
to remotely manage the water purifiers by mobile phone network. This technology
reminds customers and the after-sale staff the issues of purifier’s filter expiration
and purifier failure. In addition, the Company uses CRM system in its customer
service center in headquarter to maintain customer relationship and convey
customers’ need timely, while Ozner Water’s air purification dedicates to
provide solutions and services in the field of healthcare, foods and
electronics.
