Lincotrade & Associates Holdings Limited Announces Full Utilisation of S\$2.1 Million Placement Proceeds

Key Highlights

• Placement Details: Lincotrade & Associates Holdings Limited (“Lincotrade” or the “Company”) completed a placement of 10,000,000 new ordinary shares, raising gross proceeds.
• Net Proceeds Raised: The Company raised net proceeds of S\$2,109,000 after deducting placement-related expenses amounting to approximately S\$91,000.
• Use of Proceeds: The entire net proceeds have been fully utilised as at the date of this announcement. All funds were channelled towards the Group’s general working capital, specifically for the repayment of trade facilities which were previously used to pay suppliers and subcontractors.
• Alignment with Announced Intention: The utilisation of funds is in line with the intended use of proceeds as disclosed in earlier placement announcements.

Detailed Analysis for Investors

The Board of Directors has provided a transparent update regarding the placement that was announced in late 2025. The Company’s action to raise S\$2.109 million (net of expenses) is significant for shareholders, as it reflects efforts to strengthen the balance sheet and improve liquidity. The entire proceeds have been deployed towards repaying trade facilities, meaning the Company’s exposure to short-term debt used for supplier and subcontractor payments has been meaningfully reduced.

This move may have the following implications for shareholders and could potentially be price sensitive:

• Improved Liquidity and Financial Position: By reducing outstanding trade facilities, Lincotrade is likely to benefit from lower interest costs and a more robust financial position, which may enhance the Company’s ability to pursue future growth opportunities or manage operational risks more effectively.
• Risk Management: The repayment of debt that was used to fund supplier and subcontractor payments could reduce the risk of cash flow challenges, especially in an environment where credit conditions can be volatile.
• Compliance and Transparency: The Company has reaffirmed that the proceeds were used as intended, which enhances management’s credibility and may be viewed positively by the market.
• Potential Impact on Share Value: While the announcement does not involve new business wins or expansion initiatives, the prudent balance sheet management and reduced financial leverage may still support investor confidence and could have a stabilising or positive effect on the share price, especially among risk-averse investors.

What Should Shareholders Take Note Of?

• All Placement Proceeds Deployed: There is no remaining balance from the placement; the full S\$2.109 million has been used.
• Use Aligned with Previous Announcements: Investors should note that there has been no diversion from the previously stated use of funds, indicating strong governance.
• No Immediate Growth Initiatives Funded: The proceeds were not used for new projects, acquisitions, or direct business expansion, but rather to strengthen the Company’s working capital and reduce debt.

Corporate Governance and Oversight

The announcement has been reviewed by the Company’s sponsor, SAC Capital Private Limited, ensuring compliance with listing rules and maintaining transparency. The Singapore Exchange Securities Trading Limited (SGX-ST) has not reviewed or endorsed the content, and assumes no responsibility for its accuracy.

Conclusion

The full utilisation of placement proceeds for debt repayment reflects Lincotrade’s commitment to prudent financial management. While this does not signal immediate revenue growth, it strengthens the Company’s financial base and risk profile, which may be viewed positively by the investment community.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or an offer to buy or sell securities. Investors should conduct their own research or consult their professional advisors before making investment decisions. The writer and publisher assume no liability for any actions taken based on the information provided herein.

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