Zhejiang Jiecang Linear Motion Technology Co., Ltd. (SHSE:603583) announced that it has entered into share subscription agreement to issue not more than 53,250,525 A shares for gross proceeds of not more than CNY 1,500,000,000 on May 9, 2020. The transaction will include participation from not more than 35 investors including individual investor Hu Renchang who will subscribe shares for proceeds between CNY 30,000,000 to CNY 50,000,000. The shares to be subscribe by Hu Renchang cannot be transferred within 18 months from the issuance closing and the shares to be subscribe by other investors cannot be transferred within 6 months from the issuance closing date.

The transaction has been approved at the 8th meeting of the 4th directorate meeting of the company and in 7th meeting of the 4th supervisory board. The transaction is still subject to the approval from the shareholders of the company and from China Securities Regulatory Commission. The company will issue not more than 30% of total share capital at an issuance price will not be less than 80% of the average price in the 20 trading days before the pricing reference date.