Treasure Global Inc. (NASDAQ:TGL) has entered into two significant agreements, as revealed in a recent SEC filing. On Thursday, the company signed a Share Purchase Agreement with Alumni Capital LP, granting the latter the right to buy up to $6 million of Treasure Global's common stock. This agreement is active until December 31, 2025, or until the full Commitment Amount is purchased.
The Purchase Price under this agreement is set at 95% of the lowest daily VWAP of the common stock five days before each closing of a Purchase Notice. The deal stipulates that Alumni Capital cannot acquire more than 19.99% of Treasure Global's outstanding common stock.
Additionally, Treasure Global issued a Purchase Warrant to Alumni Capital, allowing the purchase of shares representing 10% of the Commitment Amount at a price determined by dividing a $5 million valuation by the total number of outstanding shares on the exercise date.
Simultaneously, Treasure Global has formed a strategic partnership with Octagram Investment Limited (OCTA), a Malaysian company. Through a service partnership agreement, OCTA is tasked with designing, developing, and delivering mini-game modules for integration into Treasure Global's ZCity App, an E-Commerce platform.
The SEC filing includes details of the Purchase Agreement and the service partnership agreement, which are key to understanding the full scope of these transactions. The agreements are expected to expand Treasure Global's capabilities and market presence, as they leverage Alumni Capital's investment potential and OCTA's technical expertise to enhance their E-Commerce offerings.
This news is based on a press release statement and provides a glimpse into Treasure Global's strategic moves to strengthen its financial position and product offerings.
In other recent news, Treasure Global Inc has made significant strides in its corporate initiatives. The technology solutions provider completed an at-the-market equity offering program, raising gross proceeds of approximately $2.99 million.
The funds, generated through the sale of 1,678,307 common shares, will be utilized to support the company's growth and new business ventures, according to H.C. Wainwright & Co., LLC, who collaborated on the offering.
In a significant development, Treasure Global has also formed a strategic partnership with Credilab Sdn. Bhd. to foster mutual growth. The details of the agreement, however, remain undisclosed. Simultaneously, the company has seen major shifts within its board of directors, including the departure of several members and the welcoming of new faces. Notably, Carlson Thow has assumed the role of CEO amidst these changes.
Furthermore, the company has integrated TikTok Shop with its ZSTORE platform, a feature of the ZCITY Super App, aiming to enhance the online shopping experience for ZCITY's 2.7 million users. These developments reflect Treasure Global's ongoing efforts to strengthen its corporate governance and adapt to changing market conditions.
InvestingPro Insights
Recent data from InvestingPro sheds light on Treasure Global Inc.'s financial situation and market performance, providing context to the company's recent strategic moves. The company's market capitalization stands at a modest $5.54 million, reflecting its current position in the market.
InvestingPro Tips highlight that Treasure Global "holds more cash than debt on its balance sheet," which could be seen as a positive factor in light of the recent $6 million Share Purchase Agreement with Alumni Capital LP. This cash position may have been a contributing factor in securing the investment deal.
However, the company faces significant challenges. An InvestingPro Tip notes that Treasure Global is "quickly burning through cash," which may explain the need for the recent funding agreement. Additionally, the company's revenue has seen a dramatic decline, with a -98.08% quarterly revenue growth reported in Q4 2024. This steep drop in revenue aligns with another InvestingPro Tip indicating that the stock has "taken a big hit over the last week," with a -33.97% one-week price total return.
The partnership with Octagram Investment Limited to develop mini-game modules for the ZCity App comes at a critical time, as the company's gross profit margin stands at a low 3.7% for the last twelve months as of Q4 2024. This move could be seen as an attempt to diversify and improve the company's offerings in the face of financial challenges.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Treasure Global Inc., providing a deeper understanding of the company's financial health and market position.
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