Zixin Group plans to raise $26.57m via share option deal at $0.03 each

The plan is subject to shareholder approval.

Zixin Group Holdings Limited has signed a share option agreement with a group of investors to raise up to $26.57m through the potential issuance of up to 889 million new shares at $0.030 per share.

Under the deal, both Zixin and the investors will each have the right to require the other to subscribe for or issue the shares at the agreed price.

The exercise price represents a 4.51% discount to the volume-weighted average price (VWAP) of $0.0314 per share based on trades on 17 and 18 September 2025, prior to the company’s trading halt on the Singapore Exchange (SGX-ST).

The plan is subject to shareholder approval at an upcoming extraordinary general meeting (EGM) and regulatory clearance. Investors must exercise at least 10% of their options within 14 days of the grant date, ensuring Zixin receives immediate funding.

If fully exercised, the issuance will increase Zixin’s total share capital from 1.59 billion to 2.48 billion shares, representing about 35.87% of the enlarged share base, without triggering a change in control.

The estimated net proceeds of approximately $26.57m, after deducting about $100,000 in expenses, will be used mainly to finance the group’s growth and expansion in Hainan Province, other parts of China, Singapore, and overseas markets, which will account for around 65% of the funds.

The remaining 35% will be allocated to general working capital needs, including salaries, rental, professional fees, and other administrative expenses.

The option period will last five years, and the agreement allows termination if shareholder approval or regulatory approvals are not obtained.