Addvalue Technologies Ltd Announces Exercise of Convertible Loan Notes and Warrants: 6 Million New Shares Issued

Addvalue Technologies Ltd has announced the successful exercise of certain Convertible Loan Notes (CLNs) and Detachable Warrants, leading to the issuance and listing of 6,000,000 new ordinary shares. This development introduces several important implications for current and prospective shareholders.

Key Highlights of the Announcement

• Conversion of CLNs:
  On 19 November 2025, holders of CLNs exercised their rights to convert a total of 3,500,000 CLNs (principal amount: S\$45,500) into 3,500,000 new ordinary shares at an exercise price of S\$0.013 per share.
  • 2,500,000 shares were allotted to “Restricted Persons” (as defined in the company’s earlier announcements), pursuant to approval at the EGM on 6 March 2024.
  • The remaining 1,000,000 shares were allotted to “Non-Restricted Persons” under a general mandate approved on 28 January 2024.
• Exercise of Warrants:
  On the same day, a holder of Warrants exercised 2,500,000 Warrants, resulting in the issuance of 2,500,000 new ordinary shares at the same exercise price of S\$0.013 per share. All these shares were allotted to Restricted Persons under the EGM approval.
• Total New Shares Issued:
  In total, 6,000,000 new ordinary shares have been issued, representing 0.18% of the company’s total shares before and after the issuance.
• Listing on SGX:
  The new shares will be listed and quoted on the Mainboard of the Singapore Exchange Securities Trading Limited (SGX-ST) from 9 a.m. on 26 November 2025.
• Impact on Share Capital:
  • Total issued shares increased from 3,377,692,675 to 3,383,692,675.
  • The enlarged issued and paid-up share capital is now S\$120,981,393.
  • Outstanding CLNs reduced to 25,500,000 (Non-Restricted Persons) and 37,000,000 (Restricted Persons).
  • Outstanding Warrants (Restricted Persons) reduced to 35,000,000.
• Proceeds from the Exercise:
  The company received an additional S\$32,500 from the exercise of Warrants, which will be used for working capital (payroll and administrative expenses). No new proceeds were generated from the CLN conversion as the funds were previously received upon issuance.

Important Matters for Shareholders

• Dilution Effect: The issuance of 6 million new shares dilutes existing shareholders’ stakes by 0.18%. While this is a relatively minor dilution, investors should note the potential for further dilution from the remaining outstanding CLNs and Warrants.
• Potential Share Price Impact: The conversion and warrant exercise at S\$0.013 per share may be below current market prices, potentially affecting the share price if these shares are sold in the open market.
• Further Issuances Possible: With 62.5 million CLNs and 35 million Warrants still outstanding, there is scope for further share issuance, which could lead to additional dilution in the future.
• Use of Proceeds: The S\$32,500 proceeds from the latest warrant exercise will be used for general working capital, specifically payroll and administrative expenses, aligning with previously stated plans.
• Regulatory Compliance: The company has followed due approvals for Restricted and Non-Restricted Persons, ensuring compliance with mandates and EGM resolutions.

What Investors Should Watch

• Monitor the company’s disclosures for any further exercise of CLNs or Warrants, as additional share issuances could impact the share price.
• Keep track of how the company utilizes proceeds and whether operational improvements arise from the additional working capital.
• Be mindful of the dilution risk, especially if you hold a significant stake.

Conclusion

The latest exercise of CLNs and Warrants and the resulting new share issuance are noteworthy developments that investors should be aware of. While the immediate dilution is minimal, the remaining outstanding instruments could lead to further share issuances. The use of proceeds for working capital is in line with management’s stated intentions, but the conversion price of S\$0.013 per share may be seen as a potential reference point for future exercises and could influence market sentiment.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Readers should conduct their own due diligence and consult with a financial advisor before making any investment decisions. The information is based on company disclosures as of 20 November 2025 and may be subject to change.

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