Smart Mine Safety Firm Cites Market Conditions for Fundraising Withdrawal
BEIJING, June 10 – Chongqing Mei Anshen Technology (300275.SZ) has terminated its planned 180 million yuan ($25M) private share placement to controlling shareholder Ma Yan, marking a strategic reversal for the industrial safety solutions provider. The decision follows board and supervisory committee approvals on June 9.
Transaction Details
| Parameter | Original Plan |
|---|---|
| Issue Size | ¥180M (max) |
| Issue Price | ¥7.74/share |
| Subscriber | Chairman Ma Yan (15.38% holder) |
| Post-Deal Ownership | 21.37% (projected) |
Termination Rationale
The company attributed the cancellation to three factors:
- Current capital market volatility
- Revised strategic priorities
- Ongoing operational funding adequacy
“After thorough evaluation, we determined existing liquidity sufficiently supports our smart mining safety and industrial IoT initiatives,” stated a company spokesperson. The withdrawn funds were earmarked for working capital.
Governance Context
- Sponsor: Orient Securities (representatives Guo Jiange, Yuan Hui)
- Disclosure: Initial plan filed March 2024
- Regulatory Status: CSRC application formally withdrawn
Market analysts note the cancellation follows Mei Anshen’s 18% stock price decline year-to-date, which would have created a 23% premium to Monday’s closing price of ¥6.29. The company maintains its 2025 guidance for 15-20% revenue growth in its core coal mine safety monitoring business.
Minority shareholders had raised concerns about the dilutive effect of the related-party transaction. The termination avoids potential voting conflicts ahead of Mei Anshen’s August shareholder meeting.
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