The new shares represent 21.35% of the existing share capital in the company and 17.59% of the enlarged share capital upon the completion of the proposed subscription.
The subscription price of 12 cents is a premium of 15% to the weighted average of trades done on Jan 19, 10.4 cents.
The company plans to allocate $14.07 million, or 70% of the net proceeds for direct and indirect investments into new, prospective, or existing portfolio companies of the group. The remaining 30%, or some $6.03 million, will be used for general working capital purposes.
Trendlines chairman and CEO Steve Rhodes said the equity raising will bolster the company's cash resources, enabling it to execute follow-on investments in promising companies and pursue new opportunities, both in Israel and Singapore.
See also: Sanli Environmental raises $4 million from placement, wins $105.3 million contract
“Our funnel of investment opportunities remains extremely robust, which makes this proposed subscription very timely.”
Shares in Trendlines closed flat at 10.7 cents on Jan 20.
Photo: Samuel Isaac Chua / The Edge Singapore
