China Distance Education unit announces share issuance plan
China Distance Education announced that its majority-owned subsidiary Beijing Zhengbao Yucai Education Technology Co., has announced a share issuance plan on China's New Third Board, the over-the-counter stock exchange. Under the plan, Zhengbao Yucai will issue no more than 41,880,000 common shares, representing 40.5% of the total outstanding shares of Zhengbao Yucai immediately after the share issuance, to be priced at 29c per common share. Total funds raised by the share issuance are expected to be no more than $11.9M. The proceeds from this share issuance are expected to be used for working capital and business development, which includes mergers or acquisitions of complementary businesses focused on China's college market.