TrickleStar Limited Announces Major Rights Issue to Strengthen Financial Position

TrickleStar Limited, a Singapore-incorporated company, has announced a proposed renounceable non-underwritten rights issue aimed at fortifying its financial base. The rights issue, priced at S\$0.015 per share, represents a significant discount of 39.5% to the volume weighted average price of S\$0.0248, and 42.3% to the closing price of S\$0.0260, as recorded on December 9, 2024 [[1]].

Key Highlights of the Proposed Rights Issue

• The rights issue is on the basis of four new shares for every five existing shares held as of the record date, which is yet to be determined [[1]].
• The maximum scenario foresees the issuance of up to 67,426,073 new shares, representing approximately 80% of the existing share capital and 44.4% of the enlarged share capital [[2]].
• The rights issue will not be underwritten, offering cost savings to the company by eliminating underwriting fees [[3]].

Shareholder Implications

This strategic move is expected to bolster TrickleStar’s financial resources to support growth initiatives and enhance liquidity for future opportunities. Shareholders have the opportunity to maintain their stakes at a discounted price, reflecting confidence in the company’s prospects [[6]].

Eligibility and Participation

• Shareholders with shares credited to their accounts with the Central Depository (CDP) and registered addresses in Singapore as of the record date will be eligible for the rights issue [[4]].
• Foreign shareholders will not be able to participate, with the offer documents not dispatched outside Singapore [[5]].
• Shareholders can apply for excess shares, with priority given to rounding off odd lots [[5]].

Utilization of Proceeds

The net proceeds, estimated at approximately S\$0.9 million after expenses, are earmarked for general working capital needs, which include corporate administrative expenses and operating costs. The company will report on the use of proceeds until fully utilized [[7]].

Conclusion and Forward-Looking Statements

TrickleStar’s board believes this rights issue is in the best interest of the company and its shareholders, aiming for a stronger financial footing to capture business growth opportunities as they arise. Shareholders are advised to exercise caution in trading, as the completion of the rights issue is not guaranteed at this stage [[8]].

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult with a financial advisor before making investment decisions.