TrickleStar Limited Launches Aggressively Discounted Rights Issue to Raise S\$0.9 Million

Singapore, December 10, 2024: TrickleStar Limited, a Catalist-listed company, has announced a significant renounceable non-underwritten rights issue to raise approximately S\$0.9 million, marking a strategic move to strengthen its financial position and provide liquidity for future growth opportunities.

Key Details of the Rights Issue

• Issue Price: S\$0.015 per share, representing a steep discount of approximately 39.5% to the volume-weighted average price of S\$0.0248 and 42.3% to the closing price of S\$0.0260 as of December 9, 2024.
• Allotment Ratio: Four (4) Rights Shares for every five (5) existing shares held as of the Record Date (to be announced).
• Maximum Number of Shares: Up to 67,426,073 new shares, representing 80% of the current issued share capital and 44.4% of the enlarged share capital.
• Non-Underwritten Offer: The rights issue will not be underwritten, saving costs associated with underwriting fees.
• Eligibility: Only shareholders with addresses in Singapore as of the Record Date are eligible to participate. Foreign shareholders will not be entitled to participate.

Strategic Rationale

Despite having sufficient working capital, TrickleStar Limited aims to use the proceeds to bolster its financial flexibility, support strategic growth initiatives, and seize future business opportunities. This move aligns with the company’s goal of enhancing its financial stability and enabling timely execution of growth plans.

The company has emphasized that this pricing strategy is intended to encourage broad shareholder participation, allowing existing investors to maintain or increase their stakes at a discounted price.

Use of Proceeds

The estimated net proceeds of S\$0.9 million (after deducting approximately S\$0.1 million in fees and expenses) will be fully allocated to general working capital, including corporate administrative expenses, operating costs, and other payables. Pending deployment, the funds will be deposited with financial institutions or invested in short-term money markets.

Conditions and Risks

The rights issue is subject to the approval of the listing and quotation notice (LQN) from the Singapore Exchange Securities Trading Limited (SGX-ST) and other regulatory consents. Shareholders should note that the rights issue will not proceed until these conditions are fulfilled.

Additionally, the company has reserved the option to scale down subscriptions to avoid triggering mandatory general offer obligations or other regulatory breaches.

Shareholder Considerations

Shareholders are advised to exercise caution when trading TrickleStar’s shares. The deep discount in the issue price and the potential dilution of shareholding may impact the stock’s market value. However, the company’s proactive approach to strengthening its financial position could signal long-term benefits for the Group.

Those eligible to participate are encouraged to carefully review the Offer Information Statement, which will provide detailed instructions on application processes. Shareholders who wish to trade odd lots of shares post-issue can do so on the SGX-ST’s Unit Share Market.

Important Notes

• No Underwriting: The rights issue is non-underwritten, reducing costs but adding potential risks of undersubscription.
• Foreign Shareholders Excluded: Shareholders with addresses outside Singapore are not eligible to participate.
• No Substantial Shareholder Commitments: As of the announcement date, no substantial shareholder has provided an undertaking to subscribe for their entitlements.

Conclusion

The Proposed Rights Issue represents a pivotal moment for TrickleStar Limited, offering both opportunities and risks for shareholders. While the discount pricing may pressure share prices in the short term, the move could unlock long-term growth potential and financial stability for the Group.

Disclaimer

This article is for informational purposes only and does not constitute financial advice. Shareholders and potential investors are advised to read all official announcements and consult their financial, legal, or tax advisors before making any investment decisions.