Hangzhou Wensli Silk Culture Co., Ltd. announced that it has entered into a share subscription agreement for the private placement of not more than 56,505,657 A shares for gross proceeds of not more than CNY 600,000,000 on April 4, 2023. The transaction will include participation from not more than 35 investors, including new investor, Zhoushan Sixuan Investment Partnership Enterprise (Limited Partnership) for CNY 5,000,000-100,000,000. The issue price is not less than 80% of the average price in the 20 trading days before the pricing reference date.

The shares Zhoushan Sixian Investment Partnership Enterprise (Limited Partnership) subscribes to cannot be transferred within 18 months from the issuance closing date. The shares the other investors subscribe to cannot be transferred within 6 months from the issuance closing date. The transaction has been approved in the 21st meeting of the company’s 2nd directorate and the company’s 1st extraordinary shareholders meeting of 2023 held on April 21, 2023, and is subject to the approvals of the Shenzhen Stock Exchange and the China Securities Regulatory Commission.

The company’s total share capital is 188,352,192 shares and Zhoushan Sixian Investment Partnership Enterprise (Limited Partnership) holds 11,200,000 shares, with 5.95% stake.