17.42B

In the case of a placing or open offer of securities for cash consideration, an issuer may not issue any securities pursuant to a general mandate given under rule 17.41(2) if the relevant price represents a discount of 20% or more to the benchmarked price of the securities, such benchmarked price being the higher of:
 
(1)    the closing price on the date of the relevant placing agreement or other agreement involving the proposed issue of securities under the general mandate; and
 
(2)    the average closing price in the 5 trading days immediately prior to the earlier of:
 
  (a)    the date of announcement of the placing or the proposed transaction or arrangement involving the proposed issue of securities under the general mandate;
 
  (b) the date of the placing agreement or other agreement involving the proposed issue of securities under the general mandate; and
 
  (c) the date on which the placing or subscription price is fixed,
 
  unless the issuer can demonstrate that it is in a serious financial position and that the only way it can be saved is by an urgent rescue operation which involves the issue of new securities at a price representing a discount of 20% or more to the benchmarked price of the securities or that there are other exceptional circumstances. The issuer shall provide the Exchange with detailed information on the allottees to be issued with securities under the general mandate.