Tung Lok

Tung Lok: Plans 2-for-5 rights issue and expect to raise between $6.73m and $8.96m from issue of up to 56m new shares at 16c each. The issue price represents a 23.81% discount to the closing price of 21c per share on Wed. Assuming the issue is fully subscribed, the rights shares would represent 40% of the group's existing issued share capital, and 28.57% of the enlarged issued share capital. Tung Lok has already received irrevocable undertaking for the proposed rights issue from its major shareholders. Zhou Holdings which holds a 38% stake in the company, and Goodview Properties and Tee Yih Jia Food Manufacturing (owned by Sam Goi), each holding an aggregate of 19.26% and 17.87% respective stakes in the company, have given their irrevocable undertaking to the company.