The Trendlines Group plans to raise around S$20.27 million via the subscription of 168.92 million new shares by four investors, the medical and agri-tech investment company said in a filing to SGX Wednesday.
“The purpose of the proposed subscription is to meet the group’s anticipated general working capital requirement and direct and indirect investments into new, prospective or existing portfolio companies, allowing potential expansion of its investment activities,” Trendlines said in the filing.
“Given the capital-intensive nature of the group’s business, and the unpredictability of its cash flows, the company believes it is in its best interests to have more cash for operations and investment,” Trendlines said.
The subscription price of S$0.12 a share is a premium of around 15 percent to the weighted average price of S$0.104 a share for trades on SGX on Wednesday, the filing said.
The new shares will be around 17.59 percent of Trendlines’ enlarged share capital, the filing said.
The offering will be completed in eight equal tranches, with the first installment from the investors due five days after the deal is approved, and the eighth payment is due on 1 October 2023, the filing said.
Under the deal, FEA Innovations will take up a total 28.15 million shares for S$3.38 million, for a 2.93 percent stake of the enlarged share capital, the filing said. Mississippi-based FEA Innovations is an investment holding company with Andrew Intrater, a private investor, as its sole member, the filing said.
Palm Tree IV LLC will take up 28.15 million shares for S$3.38 million, for a 2.93 percent stake of the enlarged share capital, the filing said. Virginia-based Palm Tree, an investment holding company, has Tracy Augustine, a private investor, as its sole member, the filing said.
Avztim LLC will take up 13.51 million shares for S$1.62 million, for a 1.41 percent stake of the enlarged share capital, the filing said. Nevada-based Avztim is an investment holding company with Elisha Gilboa, a private investor, as its sole member, the filing said.
The sole members of the three U.S.-based investors had previously co-invested in some of Trendlines’ portfolio companies as minority investors, the filing said, adding they wish to participate in the subscription as an investment opportunity.
Librae Holdings will take up 99.1 million shares for S$11.89 million, for a 10.32 percent stake of the enlarged share capital, the filing said. Librae Holdings is a controlling shareholder of Trendlines, currently holding 23.03 percent interest, the filing said. It is owned by the Geneva Trust Co. SA as trustees of The Tchenguiz Three Trust, which has only one beneficiary, Vincent Tchenguiz, the filing said.
The subscription agreement is subject to approval by shareholders at a special general meeting (SGM), Trendlines said.
Trendlines mainly invests via its two Israeli government-franchised incubators and its Singapore incubators, and via its funds: the Trendlines Agrifood Fund and the Bayer Trendlines Ag Innovation Fund, according to its website.