Rui Kang Pharmaceutical Group Investments Ltd. said its Chairman and Executive Director Liu Xiaolin will sell 68 million company shares under two placement agreements.
The shares, which represent 8.6% of of the company's issued share capital, will be sold at 70 Hong Kong cents per share.
Under the agreements, 40 million shares will be sold to Chen Huiyong and 28 million to Wing Man Yi.
The placing, expected to be completed on Oct. 13, will be followed by Rui Kang issuing Liu 68 million shares for 70 Hong Kong cents apiece as part of a top-up subscription agreement.
Rui Kang expects gross proceeds of HK$47.6 million from the top-up subscription. Net proceeds of HK$47.5 million will be used for potential investments and general working capital of the company.
The top-up subscription is conditional upon completion of the placing and the stock exchange's approval for the listing of the subscription shares.
The agreements would help the company meet the minimum public float requirement of 25%, with the public currently owning 20.9% of its issued share capital.
In August, Liu Xiaolin-owned Genius Lead Ltd. increased its stake in Rui Kang to 67.2%, with Liu separately owning 11.9% shares of the Hong Kong-based provider of laboratory testing and health check services.
After the completion of placing and top-up subscription, Genius Lead and Liu would together hold an about 72.8% stake in the company, with public shareholders owning the remaining 27.2%.