The Trendlines Group is seeking to raise $20.27 million by issuing 168.9 million new shares at 12 cents each to a group of four investors including Librae Holdings, which is now its single largest shareholder.
The other investors are FEA Innovations, Palm Tree IV and Avztim on Jan 19.
The new shares represent 21.35% of the existing share capital in the company and 17.59% of the enlarged share capital upon the completion of the proposed subscription.
The subscription price of 12 cents is a premium of 15% to the weighted average of trades done on Jan 19, 10.4 cents.
The company plans to allocate $14.07 million, or 70% of the net proceeds for direct and indirect investments into new, prospective, or existing portfolio companies of the group. The remaining 30%, or some $6.03 million, will be used for general working capital purposes.
Trendlines chairman and CEO Steve Rhodes said the equity raising will bolster the company's cash resources, enabling it to execute follow-on investments in promising companies and pursue new opportunities, both in Israel and Singapore.
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“Our funnel of investment opportunities remains extremely robust, which makes this proposed subscription very timely.”
Shares in Trendlines closed flat at 10.7 cents on Jan 20.
Photo: Samuel Isaac Chua / The Edge Singapore
