Lih Rong Electronic: Board of Directors Resolves to Conduct Private Placement of Common Shares
Lih Rong Electronic's board of directors has decided to conduct a private placement of common shares, amounting to up to 16.4 million shares in two tranches, to repay debt, secure working capital, and improve the financial structure. This initiative aims to attract strategic investors and enhance the flexibility and agility of fundraising.
📋 Article Processing Timeline
- 📰 Published: May 13, 2026 at 09:00
- 🔍 Collected: May 14, 2026 at 08:00 (23h 0m after Published)
- 🤖 AI Analyzed: May 14, 2026 at 08:59 (58 min after Collected)
1. Date of board resolution: May 13, 2026
2. Type of privately placed securities: Common shares
3. Private placement subscribers and their relationship with the company:
The subscribers of the private placement shall be limited to specific persons who meet the requirements of Article 43-6 of the Securities and Exchange Act, and must be strategic investors who can generate benefits for the company's long-term development, competitiveness, and existing shareholder interests. Currently, there are no specific subscribers determined, and matters related to the determination of specific persons are proposed to be fully authorized to the board of directors by the shareholders' meeting.
4. Number of privately placed shares: Not exceeding 16,400,000 common shares.
5. Amount available for private placement: Not exceeding 16,400,000 common shares, to be carried out in two tranches within one year from the date of the shareholders' meeting resolution on this private placement, with 8,200,000 shares each.
6. Basis and reasonableness of private placement price determination:
(1) The issue price will not be lower than 80% of the higher of the prices calculated based on the following two criteria, and shall not be lower than the par value of NT$10:
i. The simple arithmetic average of the closing prices of common shares chosen from one, three, or five business days prior to the pricing date, after deducting ex-rights and ex-dividend adjustments and adding back capital reduction adjustments.
ii. The simple arithmetic average of the closing prices of common shares for the thirty business days prior to the pricing date, after deducting ex-rights and ex-dividend adjustments and adding back capital reduction adjustments.
(2) The actual issue price for this private placement of common shares will be determined based on not less than 80% of the reference price. The actual pricing date and actual private placement price, within the scope not lower than the percentage resolved by the shareholders' meeting, will be authorized to the board of directors to decide based on the subsequent negotiations with specific persons and market conditions.
(3) Reasonableness of pricing: The aforementioned pricing is determined by referencing the company's stock price, complying with the regulations of the 'Directions for Public Companies Conducting Private Placement of Securities', and considering the three-year transfer restriction on privately placed securities, thus it is deemed reasonable.
7. Use of funds from this private placement:
The planned use of funds from this capital raising plan is to repay borrowings and replenish working capital to improve the financial structure. It will be carried out in two tranches within one year from the date of the shareholders' meeting resolution on this private placement. The use of funds for both tranches is to repay borrowings and replenish working capital to alleviate interest burdens, improve the financial structure, and enhance the company's operational efficiency.
8. Reasons for not adopting a public offering:
Considering the swift and simple nature of private placement, it facilitates achieving the objective of introducing strategic investors. Furthermore, the three-year transfer restriction on privately placed securities will further ensure a long-term cooperative relationship between the company and strategic investors. Additionally, authorizing the board of directors to conduct private placement based on the company's actual operational needs will effectively enhance the company's fundraising flexibility and agility.
9. Independent directors' dissenting or reserved opinions: None.
10. Actual pricing date: Not yet determined.
11. Reference price: Not yet determined.
12. Actual private placement price, conversion or subscription price: Not yet determined.
13. Rights and obligations of new shares from this private placement:
The rights and obligations of the common shares from this private placement are, in principle, the same as the company's already issued common shares. However, the transfer of privately placed common shares within three years from the delivery date shall be handled in accordance with Article 43-8 of the Securities and Exchange Act. After three years from the delivery date of the privately placed common shares, the company intends to apply to the competent authority for public issuance and listing of these privately placed common shares in accordance with relevant regulations such as the Securities and Exchange Act.
14. Record date for conversion, exchange, or subscription: Not applicable.
15. Potential dilution of equity if converted, exchanged, or subscribed: Not applicable.
16. For those with conversion or subscription rights, the potential impact on the proportion of listed common shares after the delivery of privately placed corporate bonds and assuming full conversion or subscription into common shares (listed common shares A, A/total issued common shares): Not applicable.
17. If the aforementioned projected listed common shares do not reach 60 million shares and do not account for 25%, please explain measures to address low liquidity: Not applicable.
18. Other matters to be specified:
(1) The main contents of the issue plan for this private placement of common shares, including the actual issue price, number of shares, issue conditions, private placement amount, capital increase record date, project items, estimated progress, estimated benefits, and other unaddressed matters, as well as any future amendments due to regulatory authorities or changes in objective environmental factors (excluding the private placement pricing percentage), are proposed to be authorized to the board of directors by the shareholders' meeting to handle in accordance with relevant regulations.
(2) In addition to the scope of authorization mentioned above, it is proposed that the shareholders' meeting authorize the Chairman or a designated person to represent the company in signing, negotiating, and amending all contracts and documents related to the private placement of common shares, and authorize the Chairman to handle all other related outstanding matters required for the company to conduct the private placement of common shares.
2. Type of privately placed securities: Common shares
3. Private placement subscribers and their relationship with the company:
The subscribers of the private placement shall be limited to specific persons who meet the requirements of Article 43-6 of the Securities and Exchange Act, and must be strategic investors who can generate benefits for the company's long-term development, competitiveness, and existing shareholder interests. Currently, there are no specific subscribers determined, and matters related to the determination of specific persons are proposed to be fully authorized to the board of directors by the shareholders' meeting.
4. Number of privately placed shares: Not exceeding 16,400,000 common shares.
5. Amount available for private placement: Not exceeding 16,400,000 common shares, to be carried out in two tranches within one year from the date of the shareholders' meeting resolution on this private placement, with 8,200,000 shares each.
6. Basis and reasonableness of private placement price determination:
(1) The issue price will not be lower than 80% of the higher of the prices calculated based on the following two criteria, and shall not be lower than the par value of NT$10:
i. The simple arithmetic average of the closing prices of common shares chosen from one, three, or five business days prior to the pricing date, after deducting ex-rights and ex-dividend adjustments and adding back capital reduction adjustments.
ii. The simple arithmetic average of the closing prices of common shares for the thirty business days prior to the pricing date, after deducting ex-rights and ex-dividend adjustments and adding back capital reduction adjustments.
(2) The actual issue price for this private placement of common shares will be determined based on not less than 80% of the reference price. The actual pricing date and actual private placement price, within the scope not lower than the percentage resolved by the shareholders' meeting, will be authorized to the board of directors to decide based on the subsequent negotiations with specific persons and market conditions.
(3) Reasonableness of pricing: The aforementioned pricing is determined by referencing the company's stock price, complying with the regulations of the 'Directions for Public Companies Conducting Private Placement of Securities', and considering the three-year transfer restriction on privately placed securities, thus it is deemed reasonable.
7. Use of funds from this private placement:
The planned use of funds from this capital raising plan is to repay borrowings and replenish working capital to improve the financial structure. It will be carried out in two tranches within one year from the date of the shareholders' meeting resolution on this private placement. The use of funds for both tranches is to repay borrowings and replenish working capital to alleviate interest burdens, improve the financial structure, and enhance the company's operational efficiency.
8. Reasons for not adopting a public offering:
Considering the swift and simple nature of private placement, it facilitates achieving the objective of introducing strategic investors. Furthermore, the three-year transfer restriction on privately placed securities will further ensure a long-term cooperative relationship between the company and strategic investors. Additionally, authorizing the board of directors to conduct private placement based on the company's actual operational needs will effectively enhance the company's fundraising flexibility and agility.
9. Independent directors' dissenting or reserved opinions: None.
10. Actual pricing date: Not yet determined.
11. Reference price: Not yet determined.
12. Actual private placement price, conversion or subscription price: Not yet determined.
13. Rights and obligations of new shares from this private placement:
The rights and obligations of the common shares from this private placement are, in principle, the same as the company's already issued common shares. However, the transfer of privately placed common shares within three years from the delivery date shall be handled in accordance with Article 43-8 of the Securities and Exchange Act. After three years from the delivery date of the privately placed common shares, the company intends to apply to the competent authority for public issuance and listing of these privately placed common shares in accordance with relevant regulations such as the Securities and Exchange Act.
14. Record date for conversion, exchange, or subscription: Not applicable.
15. Potential dilution of equity if converted, exchanged, or subscribed: Not applicable.
16. For those with conversion or subscription rights, the potential impact on the proportion of listed common shares after the delivery of privately placed corporate bonds and assuming full conversion or subscription into common shares (listed common shares A, A/total issued common shares): Not applicable.
17. If the aforementioned projected listed common shares do not reach 60 million shares and do not account for 25%, please explain measures to address low liquidity: Not applicable.
18. Other matters to be specified:
(1) The main contents of the issue plan for this private placement of common shares, including the actual issue price, number of shares, issue conditions, private placement amount, capital increase record date, project items, estimated progress, estimated benefits, and other unaddressed matters, as well as any future amendments due to regulatory authorities or changes in objective environmental factors (excluding the private placement pricing percentage), are proposed to be authorized to the board of directors by the shareholders' meeting to handle in accordance with relevant regulations.
(2) In addition to the scope of authorization mentioned above, it is proposed that the shareholders' meeting authorize the Chairman or a designated person to represent the company in signing, negotiating, and amending all contracts and documents related to the private placement of common shares, and authorize the Chairman to handle all other related outstanding matters required for the company to conduct the private placement of common shares.