Rex International Receives SGX Approval for S\$7.6 Million Share Placement and Warrant Issue

Key Highlights from the Latest Corporate Announcement

• Allotment and issuance of 40,082,930 new ordinary shares at S\$0.143 per share.
• Placement of 13,187,000 treasury shares at S\$0.143 per share.
• Issuance of 53,269,930 free detachable unlisted non-transferable warrants, each carrying the right to subscribe for one new ordinary share at S\$0.177 per share.
• Placement shares and warrants are being subscribed by two funds advised by Nursery Road Capital Management Ltd.: Eagle Harbor Multi-Strategy Master Fund Limited and BB Special Opportunities Fund Ltd.
• SGX-ST has granted approval in-principle (AIP) for the listing and quotation of the new shares, subject to several regulatory conditions.

Detailed Information for Investors

1. Details of the Placement and Warrants

The proposed placement involves the issuance of a total of 53,269,930 shares (combining new ordinary shares and treasury shares), all priced at S\$0.143 per share. This raises approximately S\$7.6 million in new capital for Rex International. In addition, investors will receive 53,269,930 free detachable unlisted non-transferable warrants. Each warrant entitles the holder to subscribe for one new ordinary share at an exercise price of S\$0.177 per share.

The warrants are unlisted and non-transferable, meaning they cannot be sold or traded on the open market and can only be exercised by the original recipients.

2. Strategic Investors

The placement is being made to two funds managed by Nursery Road Capital Management Ltd.:

• Eagle Harbor Multi-Strategy Master Fund Limited
• BB Special Opportunities Fund Ltd.

The involvement of institutional investors may be seen as a vote of confidence in Rex International’s business prospects.

3. SGX Approval and Conditions

The Singapore Exchange (SGX-ST) has granted approval in-principle (AIP) for the listing and quotation of the new shares. This is subject to several regulatory conditions, including:

• Ongoing compliance with SGX-ST’s listing requirements.
• Written undertakings from the Company regarding compliance with specific listing rules (803, 812(1), 829, 830, 831, 704(30), and 1207(20)).
• The company must disclose detailed breakdowns of the use of proceeds, especially for working capital, in future announcements and annual reports.
• Announcement of the conditions under which the warrant exercise price may be adjusted.

Note: The new shares must be placed out within seven (7) market days from the date of the AIP.

4. Potential Share Price Impact and Shareholder Considerations

This announcement is potentially price sensitive for several reasons:

• Dilution: The issuance of over 53 million new shares (including treasury shares) will increase the total share base, diluting existing shareholders’ stakes.
• Fundraising: The capital raised will strengthen the company’s balance sheet and could be used for business expansion, working capital, or strategic investments, which may be positive for long-term growth.
• Warrants: If exercised, the warrants could bring in additional capital at S\$0.177 per share but will further dilute existing shareholdings.
• Institutional Backing: Placement to reputable funds may enhance investor confidence in Rex International’s prospects.

However, the actual impact will depend on how effectively management puts the new funds to use, market conditions, and whether the warrants are exercised in the future.

Next Steps and Timing

The company will make a separate announcement upon completion of the allotment and issuance of the new shares and warrants. Investors should monitor for further updates, especially regarding the detailed use of proceeds and any changes to the terms of the warrants.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell any securities. Investors should conduct their own due diligence and consult their financial advisor before making any investment decisions. The information is based on the company’s official filings and may be subject to change without notice.

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