TIDMGMC
RNS Number : 0549Z
Global Market Group Ltd
15 September 2015
15 September 2015
The headline for the Global Market Group Ltd announcement
released on September 14, 2015 at 17:20 under RNS No 0212Z should
read Fundraising by Global Market's subsidiary.
The announcement text is unchanged and is reproduced in full
below.
Global Market Group Limited
("Global Market" or the "Company")
Fundraising by Global Market's subsidiary
Global Market is pleased to announce that its subsidiary, Global
Market Group (Guangzhou) Limited ("GMGZ"), has entered into
conditional subscription agreements to raise up to RMB 53.5 million
(approximately GBP5.44 million) through the subscription for cash
(the "Subscription") by Zhuhai Lu Xun Tong Logistic Co., Ltd, Li
Runming, Li Dequiang, Huang Zhiliu , Luo Yuwei and Foshan Shunde
Beijiao Xinwei Electric Appliance Co., Ltd. (the "Investors") of
1,307,967 new shares in GMGZ at RMB 40.91 per share ("Issue
Price"). The individual Investors will establish new Chinese
holding companies (as required) to this effect.
On the basis of total maximum subscription proceeds of RMB 53.5
million ("Subscription Proceeds"), the investment by the Investors
in GMGZ has been undertaken at a pre-money valuation of GMGZ of
RMB1.8 billion (approximately GBP182.89 million). On completion of
the Subscription, this will equate to the Investors having a 2.89%
equity interest in the enlarged share capital of GMGZ. Extrapolated
to the AIM Company, the dilutive effect would be 2.89%, and thus
the Directors believe the terms achieved by this fund raise, and
access to capital at this valuation level to be beneficial to
Company shareholders.
RMB 20.6 million of the Subscription Proceeds due from Investors
to GMGZ have now been received, and the remaining Subscription
Proceeds are due within three weeks, i.e. within 5 business days of
GMGZ obtaining local commercial administrative approvals of the
registration of the Investors as new shareholders of GMGZ.
The Company intends to use the Subscription Proceeds to continue
to develop the Group's technology platforms for providing
e-commerce services to manufacturers and buyers.
Commenting on the Subscription, David Ling, the Chairman and
Chief Executive Officer of the Company, said:
"We are delighted to have received such strong support from new
shareholders for this fundraising, which was priced at a premium to
our last financing. We will now be able to invest further in the
GMC system, specifically with a view to providing an enhanced user
experience for users of our e-commerce platforms."
The Subscription Agreements
All GMGZ shareholders have now signed conditional subscription
agreements (the "Subscription Agreements") with each of the
Investors under which the Investors will subscribe for a total of
1,307,967 shares in GMGZ at the Issue Price. The Subscription
Agreements contain the same terms save as to the number of GMGZ
shares to be subscribed by each Investor, details of which are set
out below.
Under the terms of the Subscription Agreements, each Investor
must pay a deposit of 20% of his Subscription Proceeds within 1
business day of the date of the Subscription Agreement. These
payment have now all been received. The remaining 80% of the
proceeds will be received within 5 business days of the date on
which GMGZ obtains local government approvals of the registration
of the Investor as a new shareholder of GMGZ. If an Investor fails
to pay its Subscription Amount when due, then the Investor must pay
to GMGZ 0.1% per day on the overdue amount. If an Investor fails to
pay any part of its Subscription Proceeds for a period of not less
than 10 days, then GMGZ is entitled to terminate the Subscription
Agreement and the Investor must compensate GMGZ for its loss. Other
terms of the Subscription Agreement include a GMGZ confirmation
that it intends to issue no more than 5 million shares in this
round, and that it is considering all its various liquidity
options, including the possibility of pursuing a listing on a
secondary or junior PRC based market for the shares of GMGZ. The
agreement also includes certain investor protection rights which,
although common in the Chinese market, would most likely not be
applicable to listings in the UK.
Information on GMGZ, GMGA and GSCT
The Company indirectly owns a 99.98 interest in GMGZ, which is a
limited liability company incorporated under the laws of China.
GMGZ is the Company's principal operating subsidiary and engages in
B-2-B e-commerce business by operating an online marketplace to
connect high-quality manufacturers in China with buyers from all
over the world. For the financial year ending 31 December 2014, the
book value attributed to GMGZ's assets in the Company's audited
accounts is approximately RMB 267.332 million (approximately
GBP27.161 million) and the amount of net profits attributable to
GMG in the Company's accounts is approximately RMB9.129 million
(approximately GBP0.928 million).
The Company owns 100% of GMGA, incorporated in Hong Kong, which
in turns owns a 99.98% equity interest in GMGZ. GSCT a company
incorporated under the laws of China, owns 0.02% of GMGZ. GSCT is
owned by David Ling, the CEO of the Company, and his brother, Mr
Weinian Pan both of whom are related parties.
Information on the Investors
The Investors are subscribing for new GMGZ shares in the
Subscription pursuant to their respective Subscription Agreement.
Details of the Investors and their Subscriptions are as
follows:
Investor Subscription Number Background information
Amount of new
(RMB) GMGZ shares
--------------------- ------------- ------------- -----------------------------
An international logistics
Zhuhai Lu company located in
Xun Tong Logistic Zhuhai city, Guangdong
Co., Ltd 10 million 244,439 province
--------------------- ------------- ------------- -----------------------------
PRC national and his
family company, Zengzhi
Jeans, located in
Xintang, Guangdong
province, a well-known
jeans manufacturer
Li Runming 20 million 488,878 in China.
--------------------- ------------- ------------- -----------------------------
PRC national and his
family, Zengzhi Jeans,
located in Xintang,
Guangdong province,
a well-known jeans
Li Deqiang 10 million 244,439 manufacturer in China.
--------------------- ------------- ------------- -----------------------------
PRC national and founder
of Foshan Laiwei Chemical
Technology Co. Ltd.,
a chemical manufacturer
in Shunde, Guangdong
Huang Zhiliu 5 million 122,439 province, China
--------------------- ------------- ------------- -----------------------------
PRC national and founder
of Shunde Tianhe Property
Management Co. Ltd.,
which operates Shunde
Tianhe Hardware Electronics
City, an offline hardware
wholesale center in
Foshan city, Guangdong
Luo Yuwei 5 million 122,219 province.
--------------------- ------------- ------------- -----------------------------
Foshan Shunde An electric appliance
Beijiao Xinwei company located in
Electric Appliance Foshan city, Guangdong
Co., Ltd. 3.5 million 85,553 province
--------------------- ------------- ------------- -----------------------------
About Global Market Group Limited
Global Market generates revenues by operating the online portal
www.globalmarket.com that connects high-quality manufacturers in
China with buyers from all over the world. GMC manufacturers listed
on the portal with "GMC" logo undergo independent quality audits
conducted by Germany's respected TUV Rhineland group ("TUV") to
gain Global Manufacturer Certificate (or "GMC") certification,
assuring international buyers they have met demanding and
independently-assessed certification standards, thus reducing risk,
building trust, and providing a convenient and inexpensive route
for manufacturers to access an international buying audience.
Manufacturers pay to use the web portal, and international buyers
are offered free access.
For further information, please visit www.globalmarket.com or
contact:
David Ling/ Cheandy Hu/ Mophy Fan
Global Market Group Limited: +86 (20) 8600 2299
Martin Davison
Westhouse Securities Limited, Broker: +44 (0)20 7601 6100
This information is provided by RNS
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