Treasure Global Inc Announces Termination of its At-The-Market Offering Program

Rhea-AI Summary

Treasure Global Inc (NASDAQ: TGL) has announced the completion and termination of its at-the-market (ATM) equity offering program. The program, launched on March 22, 2024, with H.C. Wainwright & Co., as the sales agent, concluded on September 25, 2024. TGL successfully raised the maximum total gross proceeds of US$2,990,162.32 by selling 1,678,307 common shares.

The ATM Offering was initially set up to offer common shares totaling US$2,990,900. The net proceeds from this offering will be utilized to support Treasure Global's continued growth and corporate initiatives, including new business ventures and investments. The company emphasizes that this announcement does not constitute an offer to sell or solicit offers to buy securities.

Positive

• Successfully raised maximum gross proceeds of US$2,990,162.32
• Completed ATM Offering program as planned
• Funds to be used for growth and corporate initiatives

Negative

• Potential dilution of existing shareholders due to issuance of new shares

Insights

Financial Analyst

The termination of Treasure Global's ATM Offering program marks a significant financial milestone for the company. By successfully raising $2,990,162.32 in gross proceeds through the sale of 1,678,307 common shares, TGL has nearly maxed out its $2,990,900 offering target. This capital injection provides substantial financial flexibility for the company's growth initiatives and new business ventures.

The successful completion of the ATM program suggests strong investor interest in TGL's stock, which is a positive indicator. However, it's important to consider the dilutive effect on existing shareholders, as the issuance of new shares increases the total share count. The impact on earnings per share and ownership percentages should be carefully evaluated.

For a company with a market cap of about $2.25 million, raising nearly $3 million is significant, potentially doubling the company's available capital. This could be a game-changer for TGL's expansion plans, but investors should closely monitor how effectively management deploys this capital to generate returns.

Market Research Analyst

The termination of TGL's ATM Offering program reflects a strategic move in the company's capital management. By raising funds through this method, Treasure Global has demonstrated its ability to tap into market demand for its shares without the need for a traditional secondary offering, which can be more time-consuming and expensive.

The successful completion of the program within six months indicates a relatively quick absorption of new shares by the market. This could suggest investor confidence in TGL's future prospects and growth potential in the technology solutions sector. However, it's important to note that the increased share supply may put downward pressure on the stock price in the short term.

Investors should watch for upcoming announcements regarding the specific allocation of these funds. The company's mention of "new business ventures and investments" signals potential diversification or expansion, which could reshape TGL's market position and competitive landscape in the near future.

NEW YORK and KUALA LUMPUR, Malaysia, Oct. 01, 2024 (GLOBE NEWSWIRE) -- Treasure Global Inc (NASDAQ: TGL) (“Treasure Global” or the “Company”), a leading technology solutions provider, is pleased to announce that it has completed its previously disclosed at-the-market equity offering program (“ATM Offering”) launched on March 22, 2024, and the termination of the same with H.C. Wainwright & Co., LLC, as sales agent on September 25, 2024.

The ATM Offering was initiated to offer common shares totaling US$2,990,900 from time to time, and as of the termination date, the Company has sold 1,678,307 of its common shares and raised the maximum total gross proceeds of US$2,990,162.32 before deducting commissions and offering expenses.

The net proceeds from the ATM Offering have been used to support Treasure Global’s continued growth and corporate initiatives, which encompass new business ventures and investments.

This press release does not constitute an offer to sell or the solicitation of an offer to buy securities, nor will there be any sale of the securities in any province, state, or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to the registration or qualification under the securities laws of any such province, state, or jurisdiction.        

About Treasure Global Inc:

Treasure Global is a leading Malaysian solutions provider developing innovative technology platforms. Treasure Global has developed the ZCITY Super App, a unique digital ecosystem that transforms and simplifies the e-payment experience for consumers, while simultaneously allowing them to earn rewards. As of August 9, 2024, ZCITY Super App boasts over 2.7 million registered users.

For more information, please visit https://treasureglobal.co.

Cautionary Note Regarding Forward-Looking Statements

This press release contains forward-looking statements that are subject to various risks and uncertainties. Such statements include statements regarding the Company’s ability to grow its business and other statements that are not historical facts, including statements which may be accompanied by the words “intends,” “may,” “will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,” “aims,” “believes,” “hopes,” “potential” or similar words. Actual results could differ materially from those described in these forward-looking statements due to certain factors, including without limitation, the Company’s ability to achieve profitable operations, customer acceptance of new products, the effects of the spread of the coronavirus (COVID-19) and future measures taken by authorities in the countries wherein the Company has supply chain partners, the demand for the Company’s products and the Company’s customers’ economic condition, the impact of competitive products and pricing, successfully managing and, general economic conditions and other risk factors detailed in the Company’s filings with the United States Securities and Exchange Commission. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake any responsibility to update the forward-looking statements in this release, except in accordance with applicable law.

For further information, please contact:

Investor and Media Contact
ir_us@treasuregroup.co

FAQ

How much did Treasure Global Inc (TGL) raise through its ATM Offering?

Treasure Global Inc (TGL) raised total gross proceeds of US$2,990,162.32 through its ATM Offering program.

When did Treasure Global Inc (TGL) terminate its ATM Offering program?

Treasure Global Inc (TGL) terminated its ATM Offering program on September 25, 2024.

How many common shares did Treasure Global Inc (TGL) sell in its ATM Offering?

Treasure Global Inc (TGL) sold 1,678,307 common shares through its ATM Offering program.

What will Treasure Global Inc (TGL) use the proceeds from the ATM Offering for?

Treasure Global Inc (TGL) will use the net proceeds to support continued growth, corporate initiatives, new business ventures, and investments.