HG Metal Manufacturing Limited Provides Detailed Update on Use of Proceeds from Share Placements and Rights Issue

HG Metal Manufacturing Limited (SGX: BTG) has released a comprehensive update regarding the utilisation of funds raised from a series of recent share placements and a significant rights issue. The update includes the latest breakdown of allocations, usage, and remaining balances, and will be of strong interest to shareholders and potential investors given its implications for the company’s growth plans, capital management, and strategic direction.

Key Highlights from the Report

• Three Key Fundraising Events:
  • September 2023 Placement: 25,059,406 new shares issued at S\$0.278 per share, completed on 19 September 2023.
  • June/August 2024 Placement: Up to 50,130,000 new shares issued at S\$0.266 per share in two tranches, completed on 28 June 2024 and 15 August 2024.
  • December 2024 Rights Issue: Up to 74,254,237 new shares at S\$0.266 per share (on the basis of 10 Rights Shares for every 27 existing shares), completed on 16 December 2024.
• Total Net Proceeds Raised: S\$39.378 million across all placements and the rights issue.
• Breakdown of Utilisation and Balances (as at 16 December 2025):
  • General working capital: S\$6.89 million allocated; S\$424,000 remains unutilised.
  • Capital expenditure, business expansion, and general working capital: S\$13.052 million allocated; S\$11.919 million remains unutilised.
  • General working capital, business expansion, investment & acquisition: S\$19.436 million allocated; S\$16.423 million remains unutilised, with S\$2.858 million newly utilised for investment and acquisition.
  • Total unutilised balance: S\$25.908 million as at the latest update.

Price-Sensitive and Noteworthy Points for Shareholders

• Substantial Funds Remain: With over S\$25 million of the net proceeds yet to be deployed, there is significant firepower available for new investments, acquisitions, and expansion. The strategic deployment of these funds could have a material impact on the company’s growth trajectory and future earnings.
• Investment in Eden Flame Sdn Bhd: The company has utilised S\$2.858 million for the payment of the remaining balance of the issue price for the subscription of preference shares in Eden Flame Sdn Bhd. Cumulatively, approximately S\$5.7 million (29.3% of the Rights Issue net proceeds) has been used for investments and acquisitions, indicating a clear move towards expansion and possible diversification of revenue streams.
• Allocation Policy: The company reiterated that approximately 25–30% of the Rights Issue proceeds will be dedicated to core business expansion, 35–40% for general working capital, and 30–40% for strategic investments and/or acquisitions. Investors should monitor future announcements as material deployment of these funds could be a catalyst for share price movement.
• Ongoing Updates: HG Metal Manufacturing Limited has committed to providing shareholders with updates as and when there are material disbursements or utilisation of the proceeds. This ongoing transparency is likely to be viewed positively by the market.

What Investors Should Watch

• Given the large pool of unutilised funds and the company’s intention to pursue further expansion, investment, and acquisition opportunities, any announcements regarding major transactions, capital expenditure, or new business initiatives could be significant share price catalysts.
• The company’s ability to generate returns from the subscription of preference shares in Eden Flame Sdn Bhd and other investment activities will be an important area for shareholder scrutiny.
• As the company continues to execute on its stated strategies, investors should be alert to disclosures relating to material deployments of capital, which may impact earnings, cash flows, or the overall risk profile of HG Metal Manufacturing Limited.

Conclusion

HG Metal Manufacturing Limited’s latest disclosure provides investors with detailed insight into the allocation and use of proceeds from its recent capital raising activities. With a substantial cash balance earmarked for business expansion and strategic investment, the company is well-positioned to pursue growth opportunities, which may have a positive impact on medium to long-term value creation. Investors should closely monitor further updates for actionable investment insights.

Disclaimer: The above article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any securities. Investors should conduct their own due diligence and consult their professional advisors before making investment decisions.

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