Addentax Group Corp. Announces $3.25M Private Placement

What Happened
On July 30, 2026, Addentax Group Corp. (ATXG) entered into private placement agreements to sell an aggregate of 677,084 shares of common stock at $4.80 per share for gross proceeds of approximately $3.25 million. The shares are being issued to three investors: Mr. Hong Zhihao (250,000 shares), Mr. Hong Zhiwang (218,750 shares) and Mr. Yip Wai Lun (208,334 shares). Mr. Hong Zhihao and Mr. Hong Zhiwang are brothers of the Company’s CEO and Chairman, Mr. Hong Zhida; Mr. Hong Zhiwang is also a director. The Audit Committee reviewed and approved the related-party subscriptions on July 29, 2026, and the Board approved the Private Placement the same day. The issuance is expected to rely on the Regulation S exemption (unregistered for U.S. resale); closing is subject to customary conditions.

Key Details

• 677,084 total shares to be issued at $4.80 per share; gross proceeds ≈ $3.25 million.
• Allocations: 250,000 to Hong Zhihao; 218,750 to Hong Zhiwang; 208,334 to Yip Wai Lun.
• Related-party involvement: two purchasers are brothers of the CEO; one is a Company director; Audit Committee and Board approvals obtained July 29–30, 2026.
• Use of proceeds: general corporate purposes, including working capital and potential strategic investments; shares to be issued under Regulation S (not registered in the U.S.).

Why It Matters
This transaction raises Addentax’s cash position by roughly $3.25M, which management says will fund working capital and potential investments. Investors should note potential dilution from the new shares and that insiders/related parties are participating, though the board and audit committee reviewed and approved those subscriptions. The offering is unregistered in the U.S. (Regulation S) and the closing is subject to customary conditions, so the financing is not final until those conditions are satisfied.