Matex International to Issue 154 Million New Shares in Strategic Investment

Key Points:

• Matex International Limited to issue 154 million new shares to Nanyang Commercial Management Pte. Ltd.
• The new shares represent 42.58% of existing share capital and 29.86% of the enlarged share capital.
• Transaction valued at S\$4.158 million, with a subscription price of S\$0.027 per share.
• Shareholder approval required for the transaction, expected at an extraordinary general meeting.
• Post-transaction, the Subscriber will have the right to appoint one executive director and one independent director to the Board of Matex.

Important Information for Shareholders:

• The issuance of the Subscription Shares is expected to transfer controlling interest in Matex International to Nanyang Commercial Management Pte. Ltd.
• The Subscriber has significant business experience in new energy materials and chemical-related industries, which aligns with the Group’s core business.
• An introducer fee of 1.5% of the Subscription Amount will be payable to New Lake International Capital Pte. Ltd., totaling S\$62,370.
• The transaction is subject to conditions, including the approval of the listing and quotation notice on the Catalist Board of the SGX-ST and shareholder approval.
• The Subscriber has committed to not transferring the new shares for six months post-completion without the Company’s consent.

Strategic Rationale and Use of Proceeds:

• The Subscriber aims to enhance Matex’s marketing and R&D capabilities in dyestuff and auxiliary businesses.
• Plans to develop new products in new energy materials, high-end testing instruments, and probiotic cleaning products.
• Net proceeds of S\$3.98 million will be allocated as follows:
  • 30% for market expansion
  • 20% for low-cost sourcing
  • 30% for potential new business ventures
  • 20% for working capital
• Shareholders will be updated on the usage of the proceeds through periodic announcements and financial statements.

Financial Impact:

• Post-transaction, the Group’s NTA per share will decrease from 3.39 to 3.15 Singapore cents.
• Loss per share is expected to improve from 0.98 to 0.71 Singapore cents post-transaction.

Directors’ Opinions and Next Steps:

• The Directors believe the transaction will benefit the Company and its shareholders.
• A circular will be sent to shareholders about the extraordinary general meeting for approval of the Proposed Subscription.

Trading Caution:

Shareholders are advised to exercise caution when trading shares of Matex International Limited. The Proposed Subscription is subject to certain conditions, and there is no assurance that it will be completed as planned. Further announcements will be made as developments occur.

Disclaimer:

This article does not constitute financial advice. Shareholders should consult their financial advisors before making any investment decisions. The information provided is based on the latest available data and is subject to change.