Ozner Water Proposed to Issue 317 Million New Shares to Raise HK$537 Million

HONG KONG--()--Ozner Water International Holding Limited (“Ozner Water” or “the Company”, HKEx stock code:2014, and its subsidiaries collectively the “Group”) is pleased to announce that, the Company entered into the Subscription Agreement with “Glorious Shine Holdings Limited”, the Subscriber, on 13th November 2016, pursuant to which the Subscriber has conditionally agreed to subscribe for, and the Company has conditionally agreed to allot and issue 316,299,950 new Shares. Glorious Shine Capital Limited is held by the Xiao Family Trust and the discretionary beneficiaries of which include Mr. Xiao Shu, Chairman and Chief Executive Officer of the Group and certain of his family members, as a party acting in concert. The Subscription Price is HK$1.71 per Subscription Share, representing a premium of approximately 2.40% to the closing price of HK$1.67 per Share as quoted on the Stock Exchange of Hong Kong on the Last Trading Day. Upon Completion, Mr. Xiao and their associates and concert parties will be interested in 791,032,150 issued Shares in aggregate, representing approximately 38.66% of the issued share capital of the Group as enlarged by the allotment and issue of the Subscription Shares.

The Company intends that the net proceeds of the Subscription of approximately HK$537,873,000 will be used as follows: (i) approximately 25% will be used for manufacturing and installation of water purifying machines; (ii) approximately 25% will be used for the opening of ‘‘experience stores’’; (iii) approximately 20% will be used for potential merger and acquisition of targets in the water purification and air sanitization industries; (iv) approximately 15% will be used for the building of the distribution network and service platform; and (v) approximately 15% will be used for sales and marketing activities.

The Board considers that entering into the Subscription Agreement represents a good opportunity to (i) raise a substantial amount of additional funds; (ii) improve the financial position and liquidity; and (iii) provide financial flexibility necessary for future business development and the capability to capture investment opportunity as and when it arises.

About Ozner Water International Limited

OZNER’s two business lines include water purification and air purification. Different from the traditional one-time sales mode, Ozner Water adopted a revolutionary business model, which provides water purification service while charging annual rental, providing a unique advantage in the market. The Group has established a directly managed service teamover 1000 cities in 30 provinces in China, and constructed relevant logistics and warehousing facilities to ensure efficient service and high renewal rate. Ozner Water originates the “cloud water purification technology”, which enables the Group to remotely manage the water purifiers by mobile phone network. This technology reminds customers and the after-sale staff the issues of purifier’s filter expiration and purifier failure. In addition, the Company uses CRM system in its customer service center in headquarter to maintain customer relationship and convey customers’ need timely, while Ozner Water’s air purification dedicates to provide solutions and services in the field of healthcare, foods and electronics.

Contacts

Stimulus Investor Relations Ltd.
Hill Ho, +852 3159 2944
hill.ho@stimulus-ir.com
or
Jessica Choi, +852-3159-2916
jessica.choi@stimulus-ir.com

Contacts

Stimulus Investor Relations Ltd.
Hill Ho, +852 3159 2944
hill.ho@stimulus-ir.com
or
Jessica Choi, +852-3159-2916
jessica.choi@stimulus-ir.com