Shanghai Hongda New Material Co., Ltd. (SZSE:002211) announced a private placement of common shares not exceeding 90,000,000 shares at a price of CNY 4.35 per share for gross proceeds of CNY 391,500,000 on April 10, 2020. The transaction will include participation from returning investor Shanghai Hongzi Enterprise Development Co., Ltd. for gross proceeds of CNY 282,750,000 and Shanghai Yinglian Information Security Center Co., Ltd. for CNY 108,750,000. The issuance price of the shares will be not lower than 80% of the median market price of the company’s shares as of 20 previous days to issuance date. The transaction has been approved at the 26th meeting of the 5th directorate of the company. The transaction is subject to approval from shareholders meeting of the company and China Securities Regulatory Commission. Shanghai Hongzi Enterprise Development Co., Ltd. commits to a lock up period of 36 month since issuance date while Shanghai Yinglian Information Security Center Co., Ltd. commits to a lock up period of 18 month since issuance date. The transaction is valid for 12 months since approval from the shareholders´ meeting of the company.