Addvalue Technologies Issues 15 Million New Shares After Warrant Exercise—What Investors Need to Know

Key Points from the Announcement

• Addvalue Technologies Ltd announced the exercise of 15,000,000 detachable warrants, resulting in the issuance of 15,000,000 new ordinary shares.
• These new shares will be listed and quoted on the Mainboard of the Singapore Exchange (SGX) starting from 9 a.m. on 15 August 2025.
• The exercise price for each warrant was S\$0.013, generating S\$195,000 in proceeds for the company.
• The enlarged issued and paid-up share capital of the company now stands at S\$119,308,163.
• The total number of Addvalue ordinary shares in issue has risen from 3,268,032,092 to 3,283,032,092, representing a 0.46% increase.
• After this exercise, the number of outstanding warrants has dropped to 10,500,000.
• The new funds will be used for working capital purposes, specifically payroll and general administrative expenses.

Why This Matters for Shareholders

The exercise and conversion of warrants is a significant event for Addvalue Technologies shareholders for several reasons:

• Dilution Impact: The issuance of 15 million new shares represents a 0.46% dilution for existing shareholders. While this is relatively minor, any increase in share count can affect earnings per share and ultimately the share price, especially if more warrants are exercised in the future.
• Fresh Capital: The company is raising S\$195,000 in new cash through this exercise, which will go towards its operational expenses. Although the amount is not large relative to the company’s total capital, it does signal ongoing investor interest in exercising their rights.
• Reduced Overhang: The number of outstanding warrants is now reduced to 10.5 million, lowering the potential future dilution risk. However, if these remaining warrants are exercised, further dilution could occur.
• Ongoing Funding Activities: This exercise follows previous announcements related to the issue of Convertible Loan Notes (CLNs) and detachable warrants, indicating that the company is actively using both debt and equity-linked instruments for funding. Investors should monitor any further moves as these activities can influence share price volatility.

Details Retail Investors Should Note

• The new shares are expected to be tradable and quoted from 15 August 2025.
• The funds raised are earmarked for routine operations, not for business expansion or extraordinary items.
• Proceeds from earlier CLN issues were already received, so this announcement pertains solely to new capital from warrant exercises.
• No new proceeds are generated from the conversion of CLNs into shares; only warrant exercises generate new cash inflow at this point.

Potential Share Price Implications

The issuance of new shares—even at minor dilution—can sometimes pressure share prices in the short term as investors adjust their positions. However, the fact that investors are willing to exercise warrants at S\$0.013 could also signal confidence in the company’s future prospects, especially if the market price remains above the exercise price.

Investors should keep an eye on further exercises of the remaining 10.5 million warrants, as well as management’s use of funds and future announcements regarding capital structure.

Conclusion

Addvalue Technologies’ latest warrant exercise and share issuance is a noteworthy event for retail investors. It brings in fresh capital, slightly dilutes existing shareholders, and reduces the number of outstanding warrants. The company’s ongoing capital-raising activities, use of proceeds, and future warrant exercises should be closely monitored as they can impact both dilution risk and share price performance.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own due diligence or consult a professional financial advisor before making any investment decisions.

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