INNOVATION commercialisation company Trendlines Group, on Tuesday, proposed a S$14.03 million placement of new shares, and to undertake a strategic review to cut cost and possibly implement a dividend policy.
This move could significantly boost value for its shareholders and startups, it said in an announcement to the Singapore Exchange (SGX).
The Catalist-listed Trendlines said in the filing that it has entered into an agreement with PrimePartners Corporate Finance to undertake a placement of up to 100 million new ordinary shares at 14.03 Singapore cents each, in an allotment that could raise total proceeds of some S$14.03 million.
This came after the Israel-based incubator for medical and agricultural technology startups called for a trading halt of its shares on Tuesday afternoon.
The share price represents a 9.95 per cent discount to the volume weighted average price of 15.58 Singapore cents, based on trades on SGX for the full market day preceding Tuesday, up to the time of the company's trading halt.
Assuming that all the placement shares are successfully issued and alloted, the estimated net proceeds will be about S$13.34 million, after deducting commission and other fees and expenses, the company said.
It added that of the new capital, 30 per cent will be used for general working capital, and the remaining 70 per cent for investments into new or existing portfolio companies.
Together with the placement, Trendlines said that it would undertake a strategic review of its operations "within a reasonable period of time".
The scope of the review will include the portfolio held by the company - about 45 startups as at the end of its second quarter - and the operations of its business.