Trendlines Group Completes First Tranche of Strategic Share Subscription and Revises Proceeds Allocation: What Investors Need to Know

Key Points from the Latest Trendlines Group Announcement

• First installment of new shares under the Proposed Subscription completed.
• 208.6 million new shares to be issued at S\$0.03 each, with the first tranche effectively increasing share capital by 91.8 million shares.
• Major institutional investor LH capped at 29.77% total shareholding; subscription scaled down accordingly.
• Significant change in use of proceeds: Reduced loan repayment, increased investment and working capital allocation.
• Shares to be listed on the Catalist board of SGX-ST around 24 September 2025.

In-Depth Analysis for Investors

Completion of the First Installment of Proposed Share Subscription

Trendlines Group Ltd. has successfully completed the first installment of its massive proposed share subscription, issuing a total of 91,804,984 new ordinary shares to participating investors on 18 September 2025. This issue is part of a larger plan to raise funds via the issuance of up to 208,629,396 new shares at S\$0.0300 per share, a move designed to strengthen the company’s balance sheet and fuel growth.

A crucial aspect of this transaction is the participation of institutional investor LH, whose holding in the company is capped at 29.77% post-issue to avoid triggering a mandatory general offer under regulatory rules. As a result, LH’s allocation in this tranche was reduced from 31,210,383 to 27,358,679 shares. This ensures compliance with the shareholding limit while allowing LH to maintain a significant stake in the company.

Impact on Share Capital and Listing Details

Following this tranche, Trendlines’ total issued share capital has risen from 1,228,560,818 to 1,320,365,802 shares. The new shares are expected to begin trading on the Catalist board of the Singapore Exchange (SGX-ST) on or around 24 September 2025.

Investors should note that while these new shares will enjoy pari passu rights with existing shares, US-based investors face holding restrictions until the shares are registered with the US Securities and Exchange Commission (SEC) or an exemption is obtained. Additionally, the new shares will not be entitled to dividends or other entitlements for which record dates fall before their issue date.

Major Changes in the Use of Subscription Proceeds

In a potentially price-sensitive development, Trendlines has revised its intended allocation of the subscription proceeds, shifting its priorities in response to recent funding developments. Originally, the largest portion (46.58%) of the S\$6.1 million raised was earmarked for repaying a loan from Agriline. However, following the offset of rights issue proceeds against a loan owed to LH, the allocation for loan repayment has now been dramatically reduced to 10.09% (S\$615,409).

The freed-up capital has been redirected into areas with higher potential for value creation:

• Direct and indirect investments into new, prospective, or existing portfolio companies of the Group: Up from S\$1,631,714 (26.71%) to S\$2,740,682 (44.95%).
• General working capital: Also up from S\$1,631,714 (26.71%) to S\$2,740,682 (44.95%).

This reallocation could have a positive impact on Trendlines’ long-term growth prospects, as more funds are now available for strategic investments and operational needs rather than debt reduction.

What Shareholders Need to Watch

• Potential for Share Price Volatility: The significant increase in shares outstanding could dilute existing holdings, but the pivot towards higher investment in portfolio companies and working capital may be viewed positively if it drives future growth.
• Institutional Investor Influence: The cap on LH’s shareholding prevents a takeover scenario, maintaining a balance between institutional support and minority shareholder interests.
• Liquidity and Trading: The listing of new shares could impact market liquidity and price discovery in the short term.
• Future Announcements: Trendlines will provide ongoing updates on the use of proceeds, which may include further strategic investments or material disbursements that could affect the company’s trajectory.

Conclusion

This latest development marks a pivotal moment for Trendlines Group, as it secures fresh capital while strategically shifting its financial priorities. The move away from heavy debt repayment towards investment in growth initiatives could be a catalyst for future value creation, but shareholders should remain alert to dilution risks and closely monitor upcoming announcements regarding the deployment of these funds.

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 due diligence and consult with professional advisors before making investment decisions. The author and publisher bear no liability for any losses incurred from reliance on the information presented above.

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