Green Build Technology Limited Receives In-Principle Approval for Placement of 50 Million New Shares

   

Key Highlights

• Approval Received: Green Build Technology Limited (“GBT”) has obtained approval in-principle from the Singapore Exchange Securities Trading Limited (“SGX-ST”) for the proposed placement of 50,000,000 new ordinary shares.
• Placement Details: The shares are to be issued at S\$0.0153 per share, raising an aggregate consideration of S\$765,000 for the company.
• Listing: The new shares will be listed and quoted on the Mainboard of SGX-ST, subject to conditions imposed by SGX-ST.
• Placement Deadline: The Subscription Shares must be placed out within seven (7) market days from the date of approval in-principle.

Important Information for Shareholders

• Potential Share Price Impact: The issuance of 50 million new shares may have a dilutive effect on existing shareholders’ equity and could influence share price due to increased supply and potential changes in market perception.
• Use of Proceeds: The company is required to disclose specific details on the use of proceeds, particularly if used for working capital. Regular announcements and annual reports will provide breakdowns, ensuring transparency.
• Compliance Undertakings: GBT must submit written undertakings to SGX-ST confirming compliance with:
  • Rule 704(30) and Rule 1207(20) (use of proceeds)
  • Rule 803 (listing requirements)
  • Rule 812(1) (prohibition of issuance to certain persons)
• SGX-ST Disclaimer: The approval in-principle should not be interpreted as an endorsement of the merits of the proposed placement, the company, its subsidiaries, or its securities.
• Further Updates: Management has committed to issuing further announcements regarding the placement as necessary, keeping investors informed of ongoing developments.

Shareholder Considerations & Possible Price Sensitivity

• Dilution Risk: Existing shareholders should be aware that the placement will increase the total number of shares outstanding, which may dilute their existing holdings.
• Capital Raising: The successful placement will inject S\$765,000 into GBT, potentially strengthening the company’s financial position and supporting future growth or operational needs.
• Transparency Commitments: The company’s undertaking to disclose specific details of the use of proceeds provides a positive signal of transparency and corporate governance, which may support investor confidence.
• Time Sensitivity: The seven-day window for placement means changes to share capital and possible market reactions may occur in the short term. Investors should monitor company announcements closely.

Next Steps

The company will continue to update shareholders and the market through further announcements as developments occur regarding the proposed placement.

Disclaimer

The information in this article is provided for informational purposes only and does not constitute financial advice or a recommendation to buy or sell securities. Investors should conduct their own due diligence and consult a qualified financial advisor before making investment decisions. The approval in-principle from SGX-ST does not guarantee future performance or merit of Green Build Technology Limited or its securities.

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