I just found this announcement searching in chinese under dynavolt's stock code that they released on the 31st Jan .
For what it's worth, reading through the translation and formatting issues, I think Dynavolt are going to do a capital raise to fund working capital, to allow them to continue with their investment projects.
Hopefully, at worst, this means the cheque is delayed, not cancelled altogether, but definitely form your own opinion on this one.
On the use of part of the idle funds raised to temporarily add liquidity announcement The Company and all members of the Board of Directors guarantee the truth, accuracy and completeness of the information disclosed and do not have any false records, misleading statements or material omissions.
Guangdong Mengshi New Energy Technology Co., Ltd. (hereinafter referred to as "Mengshi Technology" or "the Company") held on January 31, 2018 The 14th meeting of the Sixth Board of Directors examined and adopted the "Provisional Motion to replenish liquidity, "and agreed to use part of the company to raise 120 million yuan of idle funds to temporarily add liquidity, the term of use for the Board of Directors no longer than 6 months from the date of adoption. The relevant announcement is as follows:
I. Fundamental Information of Raised Proceeds Approved by the China Securities Regulatory Commission, Approving the Non-public Issuance of Shares by Guangdong Mengshi New Energy Technology Co., Ltd. (Zheng Jian Xu Ke [2016] No. 3230), the Company submitted the non-public offering to Shanghai Greenpeace Equity Investment Partnership (limited partnership) and other five specific investors issued the people
49,561,569 ordinary shares of currency, issue price of 26.23 yuan / share, raised funds totaling RMB 1299999954.87 yuan, net of underwriting fees and other issues costs a total of 21349561.57 yuan, the actual net proceeds of 1278650393.30 yuan. The net proceeds raised above were issued by Guangdong Zhengzhong Zhujiang Certified Public Accountants Co., Ltd. (Special General Partnership) on 1 March 2017 Yan Zi [2017] G17000730185 "Capital Verification Report" be confirmed. The net proceeds will be used for the company "a key component of new energy vehicles - lithium-ion battery production project", the main implementation of the project for the company wholly owned subsidiary of Fujian Mengshi New Energy Technology Co., Ltd. (hereinafter referred to as "Fujian Mengshi" ).
II. Management and Usage of Raised Funds 1. According to Regulation of Listed Company Supervision No. 2 of China Securities Regulatory Commission - Requirements for Regulating and Using Funds Raised by Listed Companies, Rules for Listed SME Board of the Shenzhen Stock Exchange Operation guidelines "and other relevant laws and regulations and requirements of" Guangdong Mengshi New Energy Technology Co., Ltd. to raise funds to use management system "and other relevant provisions of the proceeds will be deposited in the special funds to raise funds. On March 23, 2017, the Company, China CIC Securities Co., Ltd. (hereinafter referred to as "China CIC Securities" or "sponsor institution"), together with Bank of Communications Co., Ltd. Shantou Longhu Branch and CITIC Bank Co., Ltd. Shantou Branch Signed an agreement on the tripartite regulatory agreement for fundraising and signed the Agreement on the Quartet Supervision of Fund Raising jointly with Fujian Mengzi, China Investment Securities and Zheshang Bank Co., Ltd. Shenzhen Branch.
2, the use of funds raised
(1) The Company examined and approved the 54th meeting of the 5th Board of Directors held on March 23, 2017 The "Proposal on Using Raised Funds to Replace Self-Financing Earned in Advance" and agreed that the Company should use the proceeds raised Gold 317746680.19 yuan replacement has been invested in advance raised funds to invest in self-financing projects. The details of the Company's investment in projects for raising funds by self-raised funds have been verified by Guangdong Zhengzhong Zhujiang Certified Public Accountants (Special General Partnership) and a "Validation Report" (Guang Hui Zhu Zi [2017] G17000730353) has been issued.
(2) The Company held the 54th meeting of the Fifth Board of Directors and the 1 st extraordinary shareholders' general meeting of 2017 respectively on March 23, 2017 and April 10, 2017, which reviewed and approved the Proposal on Increasing Funds by Using Raised Funds Owned subsidiary of Fujian Mengshi New Energy Technology Co., Ltd. motion, "agreed to increase the company part of the proceeds raised to 900 million yuan invested wholly-owned subsidiary of Fujian Mengshi, for the implementation of the company" the core components of new energy vehicles - lithium Ion battery production project. "
(3) As of January 29, 2018, the balance of funds raised by the Company amounted to RMB 6229,1215.26 and the balance of funds raised by Fujian Mengshi amounted to RMB 44,284,9040.67. The unutilized raised funds
505140255.93 dollars.
Third, the use of part of the idle funds raised to temporarily add liquidity situation According to the fund-raising plan of the Company's fund-raising projects, it is estimated that some of the raised funds will be idle in the next 6 months. In order to avoid idle funds, improve the utilization efficiency of funds and reduce the financial expenses, under the premise of ensuring the utilization plan of raised funds is not affected , The company intends to no more than 120 million yuan of raised funds temporarily used to supplement liquidity, the use of time for the Board of Directors considered and approved not more than 6 months. By the same period The benchmark interest rate for one-year bank loans rose by 50% at a rate of 4.35%. It is estimated that a total of about 3.9 million yuan of financial expenses will be saved.
Fourth, the use of part of the idle funds raised to temporarily add liquidity plan and the relevant instructions and commitments
1, the use of part of the idle raised funds to temporarily add liquidity will not change the purpose of raising funds, it will not affect the normal conduct of investment plans to raise funds. The use of part of the idle funds raised to temporarily add liquidity, limited to the main business-related production and operation, not through direct or indirect arrangements for the placement of new shares, purchase, or for stocks and derivatives, convertible bonds Other transactions.
2, in order to ensure the timely return of funds used to supplement the temporary liquidity to raise funds to ensure that The normal implementation of investment projects, the company will always use its own funds, bank loans promptly returned to ensure project progress.
3, the company promised to use this part of the idle raised funds temporary replenishment of liquid capital within 12 months before There is venture capital investment, and no venture capital investment is made during the temporary replenishment of working capital with part of the idle raised funds, and financial assistance is not provided to those other than the controlled subsidiaries.
Fifth, Opinion of Independent Directors The current temporary use of part of idle raised funds to supplement working capital is in conformity with the Guidelines for Standardized Operation of Listed Companies in SMEs in Shenzhen Stock Exchange and the Management System of Use of Raised Funds by Guangdong Mengshi New Energy Technology Co., Ltd. Provisions do not affect the company to raise funds for the normal investment projects, there is no disguised behavior to change the use of proceeds. The use of part of idle raised funds to temporarily replenish working capital helps to reduce the Company's financial expenses and raise the efficiency of the use of raised proceeds, which is in the interest of all shareholders of the Company. I We all agreed that the Company temporarily reload its working capital by using part of the idle funds raised.
Sixth, the views of the board of supervisors The use of part of the idle funds raised to temporarily add liquidity will help reduce the company's financial costs and improve the efficiency of the use of funds, the relevant decision-making process in line with the "Shenzhen Stock Exchange SME board listed companies standard operating guidelines" and "Guangdong Lion new energy technology shares Limited by the use of funds raised management system, "the relevant provisions, does not affect the normal implementation of the company plans to raise funds, there is no disguised behavior to change the use of proceeds, there is no damage to the company and all shareholders, especially the interests of small shareholders. The board of supervisors agreed that the Company temporarily replenish working capital with part of idle raised funds.
Seven, the sponsor advice According to the relevant regulations, the sponsor institution has conducted a careful verification of the temporary replenishment of liquidity by Meng Lion Technology using part of its idle raised funds, including but not limited to the relevant proposals, resolutions of the board of directors, resolutions of the board of supervisors and opinions of independent directors. After verification, the sponsor think: Meng Lion Technology use part of the idle funds raised to temporarily add liquidity matters have been reviewed and approved by the Board of Directors and the Board of Supervisors approved the independent directors, agreed to implement the necessary procedures, in line with the "Supervisory Guidelines No. 2 listed companies - listed companies to raise Capital management and use of regulatory requirements "," Shenzhen Stock Exchange SME board listed companies standard operating guidelines "and other relevant requirements. The use of this part of the company to raise funds temporarily idle to supplement the working capital of the working period for the board of directors to consider the adoption of the motion The company will return the part of the funds to the special account for raising funds in time and in full amount without affecting the normal operation of the projects for raising funds and in line with the requirements of the Company Business development needs, there is no disguised change in the use of funds raised. This additional working capital is used for the production and operation related to the main business of Mengshi Technology and shall not be used, either directly or indirectly, for the placing of new shares, purchase of shares, or for the trading of stocks and derivatives thereof, convertible corporate bonds.
In summary, China Investment Securities Mengshi Liontech this part of the use of idle funds raised temporarily to raise liquidity issues no objection.
Special announcement. Guangdong Mengshi New Energy Technology Co., Ltd. Board of Directors January 31, 2018
MTC Price at posting:
22.5¢ Sentiment: Hold Disclosure: Held
(20min delay)