MH Development Limited (SEHK:2662) announced that it has entered into subscription agreement with new investor Runjing Holdings Limited for private placement of 128,961,749 shares at a price of HKD 0.183 per share for gross proceeds of HKD 23,600,000 on February 22, 2021. The investor will acquire 67% stake in company along with debt conversion. The company will pay professional fees and expenses of HKD 1,500,000 and receive net proceeds of HKD 22,100,000 in the transaction. The transaction has been approved by the board of directors of the company. The transaction is subject to approval of shareholders of the company and the Listing Committee of the Hong Kong Stock Exchange. The transaction will be completed on 5th business day of fulfilling the conditions. The shares are subject to hold period of 12 months from issuance.