Matex International Limited Reports Significant Legal Expenditure: Potential Implications for Investors

Key Highlights

• Legal Expenditure of S\$518,942.41 incurred between 5 July and 17 September 2025, tied to shareholder requisitions, two lawsuits, and a settlement agreement.
• Expenditure constitutes 93.5% of the Group’s gross profit for 1H2025 and approximately 5.3% of net assets as at 30 June 2025.
• The Board is actively assessing the impact on financials and seeking legal advice regarding the quantum and reasonableness of the spending.
• Potential for further material developments and announcements as the situation evolves.

Detailed Overview

Matex International Limited (“Matex” or “the Company”), together with its subsidiaries (“the Group”), has disclosed a substantial legal expenditure amounting to S\$518,942.41. This spending was incurred over a short span of roughly 10 weeks, from 5 July to 17 September 2025, and relates to a series of shareholder requisitions, two lawsuits (HC/OA 733/2025 and HC/OA 790/2025), and the execution of a settlement agreement dated 14 September 2025.

The Board, upon reviewing the Company’s accounts, identified that the legal fees and expenses were expended by former executive directors and management. The quantum of the expenditure is especially notable as it represents nearly the entire gross profit (93.5%) made by the Group in the first half of 2025, and is a significant 5.3% of the Group’s net assets as at the end of June 2025.

Potential Price-Sensitive Developments

• Impact on Financials: The high proportion of legal expenditure relative to gross profit and net assets may have material implications for the Group’s profitability and financial stability in the near term.
• Board Review and Legal Advice: The Board is currently assessing both the impact on the Group and the reasonableness of the legal expenditure incurred by previous management. This review could lead to further actions, including potential claims, restatements, or governance changes.
• Ongoing Disclosure: The Company has committed to making further announcements should any material developments arise regarding this matter. Investors should monitor for updates, as these may directly affect share value.
• Governance and Accountability: The incident highlights possible concerns over past executive decisions and governance, which may influence investor sentiment and the Company’s reputation.

What Shareholders Need to Know

This disclosure is highly relevant for shareholders, as the magnitude and timing of the legal expenditure could materially affect the Company’s earnings, asset base, and overall financial health. The Board’s actions to review and potentially seek legal advice on the reasonableness of these expenses signal a commitment to transparency and proper governance going forward.

Investors are advised to closely follow further updates from Matex, as any new information regarding the Board’s findings, remedial actions, or financial restatements could have a significant impact on the share price.

Contact and Regulatory Notes

The announcement has been reviewed by the Company’s sponsor, ZICO Capital Pte. Ltd., but not by the Singapore Exchange Securities Trading Limited (SGX-ST). The SGX-ST assumes no responsibility for its content.

Conclusion

The newly revealed legal expenditure represents a significant event for Matex International Limited, with implications for its financial performance, governance, and future direction. Shareholders should remain vigilant and monitor for further announcements, as the situation remains dynamic and potentially price-sensitive.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult with professional advisors before making any investment decisions. The information provided is based on the latest company disclosures and may be subject to change.

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