Metech raises US$2.93M placement to reverse negative working capital
What's the deal? Singapore-listed Metech International will issue 100 million new shares at US$0.03 each, raising gross proceeds of US$2.93M through a private placement.
The shares will be split equally between Singapore businessman Ma Ong Kee and Hong Kong-based Raffles Capital Limited, each taking a 13.75% stake post-placement.
Proceeds of roughly US$2.92M will go entirely towards general working capital.
Why now? Metech is digging out of a financial hole. It reported a US$366.7K loss and negative working capital of US$1.06M for FY2025, with a further negative US$865.3K as at March 31, 2026.
Those figures left the company in a net liability position, prompting the raise to shore up liquidity.
The placement uses a general mandate approved at the April 2026 AGM, so it needs no further shareholder approval. The US$0.03 price is a 2.56% premium to the last traded VWAP of US$0.03 on June 26, 2026.
What could go wrong? The deal still hinges on SGX approval for listing and quotation of the new shares, and the company warns there is no certainty it will complete.
It will also dilute existing holders, lifting the share base from 263,510,200 to 363,510,200 shares.
The signal: The placement is a lifeline rather than a growth bet, swinging net tangible assets per share from negative US$0.12 to a positive US$0.72 and trimming loss per share from US$0.14 to US$0.1. Backing from two seasoned investors — Raffles Capital is owned by private banking veteran Dr Charlie In Nany Sing, once a director of a Metech subsidiary — signals confidence that the small-cap can stabilise and trade its way back to health.
Read more: minichart.com.sg
Image credit: dmjarvey
