Emerging Towns & Cities Singapore Ltd.: Detailed Update on Trading Resumption Proposal

Key Points from the Latest Company Announcement

• Trading Resumption Proposal: Emerging Towns & Cities Singapore Ltd. (ETC) has taken significant steps towards the resumption of trading of its shares on the SGX Catalist, after having been suspended since 3 March 2021.
• Recent Milestones: The company has completed a series of corporate actions since 2023, including:
  • Board and committee changes, including the appointment of Mr. Ye Binlin as Independent Director and Chairman of the Audit Committee.
  • Disposal of DAS Pte. Ltd. to Grand Ally Investments Pte. Ltd. and execution of related agreements.
  • Incorporation of a new indirect subsidiary in China: Hainan Jiupeng Chuhe Technology Co., Ltd. (HJC).
  • Entry into subscription agreements for S\$4.5 million in convertible bonds and management option agreements with key HJC management.
  • Completion of the Extraordinary General Meeting (EGM) and Annual General Meeting (AGM), which approved all major transactions including grant of management options and extension of option periods.
• Convertible Bonds & Management Options: ETC secured S\$4.5 million funding via convertible bonds, potentially convertible into 968,270,000 new shares. Additionally, management options to subscribe for 239,080,000 new shares have been granted to key HJC employees, with option periods extended from 3 months to 36 months.
• Completion of Major Transactions: The company finalized the disposal of DAS Pte. Ltd., received the agreed consideration, and discharged related corporate guarantees, further strengthening its financial position.
• Regulatory Progress: ETC submitted its application to the SGX-ST for the listing of new shares arising from bond conversion and option exercises, and for the resumption of trading. The company has responded to two rounds of SGX Regco queries as of August 2025 and is actively seeking further regulatory updates.

Important Developments for Shareholders

• Resumption of Trading: This is a potentially price-sensitive event. If SGX-ST grants approval, the company’s shares could resume trading after a suspension of over four years. This could have a significant impact on share value, depending on market perception of the company’s refreshed strategy, improved balance sheet, and new business direction.
• Substantial Dilution Possible: The potential conversion of S\$4.5 million in bonds and exercise of management options could result in the issuance of over 1.2 billion new shares. Shareholders should be aware that this could lead to substantial dilution of existing shareholdings, which may impact share price upon resumption of trading.
• Strategic Shift: The disposal of DAS Pte. Ltd. and the establishment of a new technology-focused subsidiary in China represent a significant shift in ETC’s business direction, which may affect its long-term value proposition and risk profile.
• Regulatory Risk: The resumption of trading is still subject to SGX-ST approval, and there is no guarantee of acceptance. Ongoing regulatory engagements indicate that ETC is not yet cleared for trading resumption, and any adverse outcome could further delay or jeopardize trading resumption, affecting shareholder value.

Detailed Timeline of Key Corporate Actions

• 2023: Board reconstitution, disposal of DAS Pte. Ltd., incorporation of HJC, and withdrawal of a waiver application regarding business valuation.
• 2024: Extension of disposal deadlines, entry into convertible bond and management option agreements, and completion of EGM approving all major transactions.
• 2025: Appointment of Mr. Duan Yupeng as Executive Officer, completion of the discharge from corporate guarantee, extension of management option periods to 36 months, completion of AGM, receipt and payment of disposal consideration, and submission of trading resumption proposal to SGX-ST.
• August 2025: Company responded to two rounds of SGX Regco queries regarding trading resumption, and continues to await final regulatory approval.

Shareholder Guidance and Caution

Trading in the company’s shares remains suspended. Shareholders and potential investors are strongly advised to exercise caution. Any decision to trade should be made only after careful consideration of the company’s announcements and, if in doubt, after consulting with professional advisors.

Key risks: Potential for further delay or rejection of trading resumption, dilution risk from new share issuances, and uncertainties regarding the company’s new business focus in China.

Conclusion

The anticipated resumption of trading in Emerging Towns & Cities Singapore Ltd. shares represents a pivotal event that could significantly impact shareholder value. The company’s overhaul—marked by asset disposals, new investments, and strategic realignment—may reposition it for future growth, but also introduces new risks. Investors should monitor forthcoming announcements closely, as regulatory decisions and corporate developments will be highly price sensitive.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors are advised to conduct their own due diligence and consult with professional financial advisers before making any investment decisions. The author and publisher assume no liability for any actions taken based on this information.

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