Addvalue Technologies Issues 15 Million New Shares from Warrant Exercise: What Investors Need to Know

Key Highlights from the Latest Corporate Action

• 15 Million Warrants Exercised: On 6 August 2025, a warrant holder exercised a total of 15,000,000 warrants, resulting in the issuance of 15,000,000 new ordinary shares at an exercise price of S\$0.013 per share.
• New Shares Listing: These new shares will be officially listed and quoted on the Mainboard of the Singapore Exchange Securities Trading Limited (SGX-ST) on or about 15 August 2025, starting from 9 a.m.
• Impact on Share Capital: The total number of issued ordinary shares will increase from 3,268,032,092 to 3,283,032,092.
• Proceeds Raised: The company will receive S\$195,000 in proceeds, which will be used for working capital, specifically payroll and general administrative expenses.
• Warrants Outstanding: The total number of outstanding warrants has decreased to 10,500,000 after this exercise.
• Share Capital Value: The enlarged issued and paid-up share capital of the company now stands at S\$119,308,163.

What Should Shareholders and Retail Investors Note?

1. Potential Share Dilution:

   The issuance of 15 million new shares represents a 0.46% increase over the previous share base, both before and after the exercise. Shareholders should be aware that this may have a dilutive effect on their existing holdings, although the percentage is relatively small.

2. Use of Funds and Financial Health:

   The S\$195,000 raised from this exercise will go towards working capital, specifically to cover payroll and administrative expenses. While this is a positive move for operational liquidity, the modest size of the proceeds suggests that the company may still need to consider other fundraising options for larger capital needs in the future.

3. Warrant Overhang:

   After this exercise, 10.5 million warrants remain outstanding. If and when these are exercised, further dilution could occur, and the company stands to raise additional capital.

4. Potential Price Sensitivity:

   The exercise price of S\$0.013 per share is noteworthy for investors as it may set a psychological benchmark for short-term trading. If the market price is close to or above this level, further warrant exercises may be expected, potentially capping upside in the near term.

5. Shareholder Value Considerations:

   While the amount raised is not large relative to the company’s total capital base, any corporate action involving new share issuance and potential dilution is material for existing shareholders. Investors should monitor the company’s future announcements regarding the use of proceeds and any additional fundraising plans.

Full Details of the Transaction

The Board of Directors of Addvalue Technologies Ltd announced that as of 6 August 2025, a warrant holder has exercised 15,000,000 detachable warrants at S\$0.013 per share. The resultant 15,000,000 new ordinary shares will be listed on the SGX-ST on or about 15 August 2025. The new shares constitute 0.46% of the company’s existing and enlarged share base, taking the total issued ordinary shares from 3,268,032,092 to 3,283,032,092. The company’s total issued and paid-up share capital now stands at S\$119,308,163. The number of outstanding warrants drops from 25,500,000 to 10,500,000.

The entire proceeds of S\$195,000 from this warrant exercise will be allocated to working capital needs, primarily payroll and general administrative expenses. This is in line with previous disclosures on the intended use of funds.

Importantly, investors should note that proceeds from the earlier Convertible Loan Notes (CLNs) issuance, which these warrants were attached to, were already received at the time of the CLN issuance. Thus, only the exercise of the warrants brings in new capital at this stage.

Bottom Line

This announcement signals incremental dilution for shareholders but also demonstrates continued investor engagement through warrant exercises, which inject fresh funds into Addvalue Technologies. Shareholders should stay attentive to further warrant exercises and the company’s use of proceeds, as these will impact both share capital structure and operational funding.

The new shares being issued and the low exercise price may influence short-term market sentiment and trading behavior. In the longer term, the company’s ability to deploy the new funds efficiently and generate returns will be key for shareholder value.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any securities. Investors should conduct their own research and consult their financial advisors before making investment decisions.

View Addvalue Tech^ Historical chart here