Mainboard-listed China Taisan Technology Group Holdings, the manufacturer of knitted fabrics used for sports and casual apparel, has entered into an agreement to issue 30 million new shares to Atlantis Investment Management, a boutique asset management firm based in London. The shares will be placed out at 19.5 cents per share, or a discount of 8.6% to the weighted average price of 21.33 cents of the company’s ordinary shares for trades done on 30 April 2010.

The 30 million new shares represent 3.13% of the enlarged 957.9 million shares in issue. Choi Cheung Kong, China Taisan’s Non-Executive Chairman, would remain the majority shareholder with a 50.6% stake in the company after the placement. To facilitate the placement, China Taisan has entered into a share lending arrangement with Lin Wen Chang, the CEO of China Taisan, to borrow up to 30 million existing ordinary shares from him or his nominee.

The placement will raise around RMB29.2 million ($5.87 million) for China Taisan for general working purposes. For 4QFY2009, revenue rose 0.7% y-o-y, compared to a decline of 30.9% in 1QFY2009.