Hong Kong-listed MICROWARE (01985) has entered into a placement agreement with a placing agent, as disclosed in a recent filing.

The agreement, dated July 6, 2026, appoints the agent to use its best efforts to place up to 30 million new shares to no fewer than six independent placees at a price of HK$3.35 per share.

The placement price of HK$3.35 per share represents a discount of 3.2% compared to the closing price of HK$3.46 per share on the date of the agreement.

It also represents a discount of approximately 1.6% relative to the average closing price of HK$3.406 per share over the five trading days immediately preceding the agreement date.

Assuming the full placement of all 30 million shares, they would account for 10.00% of the company's existing issued share capital of 300 million shares.

Following the issuance, the new shares would represent approximately 9.09% of the enlarged issued share capital.

If the placement is fully subscribed, the gross proceeds are expected to be approximately HK$100.5 million, with net proceeds estimated at around HK$99.2 million.

The company intends to allocate the net proceeds from the placement for several specific purposes.

Approximately 40%, or HK$39.6 million, is earmarked for expanding the group's core existing business.

This expansion includes enhancing technical capabilities and deepening research and development in artificial intelligence-related business and technology.

A particular focus will be on developing smart all-in-one machines and driving product iteration for sectors such as healthcare, government, education, finance, and services.

Another 40%, or HK$39.6 million, is designated for improving the group's liquidity level.

These funds will support the procurement of software and hardware and facilitate payments to suppliers.

The remaining 20%, or HK$20 million, will be used for the group's general working capital requirements.

This includes covering administrative and operational expenses.