If Xinhuo Technology completes the new share placement, major shareholder Li Lin's stake will be diluted to 26.12%, and Shen Nanpeng's stake will be diluted to 7.92%

ChainCatcher news, according to DeThings, if New Fire Technology completes its new share placement, its major shareholder Li Lin's stake will be diluted to 26.12%, while another shareholder Shen Nanpeng's stake will be diluted from 11.94% to 7.92%. The stake of New Fire Technology's executive director and CEO Du Jun will increase to 16.86%. OnChain's stake will increase to 17.66%. According to New Fire Technology's announcement, the estimated net proceeds from this share placement are approximately HKD 325 million, of which HKD 235 million will be used to repay loans, and HKD 90 million will be used for the group's business development and operating funds. Previously, the company recognized a loss of USD 18.1 million on cryptocurrency asset deposits due to the collapse of FTX and loaned USD 13.2 million to major shareholder Li Lin.

New Fire Technology was formerly known as Huobi Technology, and its major shareholder Li Lin was previously the founder of the cryptocurrency trading platform Huobi. Before the share placement of New Fire Technology, the well-known venture capital firm Sequoia China and its founder Shen Nanpeng held 11.94% of New Fire Technology's shares.

Earlier, New Fire Technology announced that it had signed a share subscription agreement with Du Jun and ON CHAIN Technology LIMITED (controlled by Zhong Gengfa), with Du Jun's total subscription price being HKD 155 million, accounting for 24.18% of the issued shares, and On Chain's total subscription price being HKD 171 million, accounting for 26.64% of the issued shares, totaling HKD 326 million, which will be paid in cash upon meeting the conditions precedent. (source link)