Hot stock: Trendlines up 15.3% after letter of intent for portfolio company
SHARES of The Trendlines Group jumped to an eight-month high on Tuesday after the company said it received a non-binding letter of intent (LOI) for the acquisition of a portfolio company by a public corporation.
The counter hit an intraday high of 11.3 Singapore cents on Tuesday, up 15.3 per cent or 1.5 cents as at 9.16am. The last time the startup incubator's shares closed near this level was on Aug 6, 2020.
By the midday trading break, Trendlines was trading up 14.3 per cent or 1.4 Singapore cents to 11.2 cents, with 29.5 million shares changing hands.
If a definitive agreement is signed and the acquisition is completed, the deal is expected to have a material positive impact on Trendlines' net tangible assets per share and earnings per share for the financial year ending Dec 31, 2021, it said in a bourse filing.
Based on the LOI, Trendlines' minimum share of the sale proceeds to be received in cash is estimated to be about S$19 million.
However, the group said there is "no assurance" that the LOI will be executed, or that the sale of its portfolio company would take place.
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On Monday, Trendlines announced a proposal to seek a dual primary listing on Israel's Tel-Aviv Stock Exchange. It plans to raise more capital with a public offering of new securities in conjunction with the listing and expects at least 70 per cent of these securities to be subscribed by institutional investors.
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