Lung Cheong International Holdings Limited (HKG:0348) announced that the Company is in the course of negotiations for a series of transactions involving possible issue of new shares and convertible notes to a subscriber and placing of new shares and convertible notes to a number of independent third party(ies).

The proposed transactions are conditional upon, among other things, the granting of the whitewash waiver by the executive director of the Corporate Finance Division of the Securities and Futures Commission of Hong Kong pursuant to the Hong Kong Code on Takeovers and Mergers and such condition is not waivable insofar as the subscription of new shares and convertible notes
is concerned.

Net proceeds from the proposed transactions are intended for the purposes of financing general working capital or any suitable investment projects.

The Company stated that no formal agreement in relation to the above mentioned proposed transactions has been entered into yet.