Fitipower Integrated Technology : announced the modification of the utilization plan for 2021 capital injection by cash offering

Close

Today's Information

Provided by: Fitipower Integrated Technology Inc.
SEQ_NO	2	Date of announcement	2022/03/17	Time of announcement	21:00:29
Subject	Fitipower announced the modification of the utilization plan for 2021 capital injection by cash offering
Date of events	2022/03/17	To which item it meets	paragraph 16
Statement	1.Date of the board of directors resolution for the change:2022/03/17 2.Effective registration date of the original plan:2021/06/28 3.Resolution date of additional issuance of the original plan:NA 4.Reason for the change: The company originally planned to purchase an office building close to Hsinchu Science Industrial Park. However both the buyer and seller could not reach a consensus for the underlying target, other real estates that the agency recommended is unable to meet the requirement for available space and transportation convenience. Considering the current situation of the company's operation need and the international political and economic unrest, which may influence the semiconductor supply chain. The company plans to modify the utilization plan of NT$3,015,105 thousand as working capital instead of an office building procedurement. 5.Content of each and every successive previously changed plan for raising of funds before and after change: (1) Before the change Purchasing an office building of NT$3,015,105 thousand, enriching the working capital of NT$2,084,895 thousand. (2) After the change Enhancing working capital of NT$5,100,000 thousand (while NT$2,084,895 thousand was used to enrich working capital and was fully implemented in the third quarter of 2021) 6.Projected timetable for execution: NT$3,015,105 thousand in the First Quarter of 2022 7.Projected completion date:The First Quarter of 2022 8.Projected possible benefits: After the plan is changed, the company's equity fund will be more sufficient so as to benefit the overall operational development and financial structure. 9.Difference from original projected benefits: The enrichment of working capital has been changed from NT$2,084,895 thousand to NT$5,100,000 thousand, which will increase the flexibility of capital utilization and deployment and improve the financial structure. 10.Effect of the current change on shareholder equity: The global semiconductor industry has experienced the US-China tech war, automotive chip shortage, spread of COVID-19 and Russia-Ukraine war which began in February 2022, which increase the uncertainties to the global semiconductor supply chain. Considering the operation and capital status of the company, and avoiding the impact on the shareholder equity, the capital plan and project expenditure situation will be adjusted and changed appropriately according to the needs. It will benefit the company's business and fund while shareholder equity should not be materially affected. 11.Abstract of the original lead underwriter's appraisal opinion: The company originally planned to purchase its own office building for NT$3,015,105 thousand. However, in consideration of factors such as fund, available space and surrounding traffic, it was unable to find a suitable target. Besides, due to the international political and economic unrest, the semiconductor industry must carefully handle. The company decide to retain equity fund after evaluate the factors such as business strategy and operating environment. Therefore,the original use of the funds for the purchase of office building was changed to enrich the working capital. It is reasonable and necessary that the company modify the usage of fund considering the flexibility of fund, change of international situation and the business strategy. 12.Any other matters that need to be specified:None