Treasure Global completes $2.99 million equity offering

NEW YORK and KUALA LUMPUR, Malaysia - Treasure Global Inc (NASDAQ: TGL), a technology solutions provider, announced the completion of its at-the-market equity offering program (ATM Offering) on September 25, 2024, in collaboration with H.C. Wainwright & Co., LLC. The ATM Offering, which began on March 22, 2024, allowed the company to sell common shares from time to time, reaching a total of 1,678,307 common shares sold and raising gross proceeds of approximately $2.99 million before deductions for commissions and offering expenses.

The net proceeds from the offering are being used to support Treasure Global's growth and corporate initiatives, including new business ventures and investments. The company has stated that the funds will contribute to its ongoing development and expansion.

Treasure Global is recognized for creating the ZCITY Super App, a digital platform that enhances the e-payment experience for users while offering rewards. The app has gained significant traction, boasting over 2.7 million registered users as of August 9, 2024.

This press release does not constitute an offer to sell or a solicitation of an offer to buy securities. The sale of securities will not occur in any jurisdiction where such an offer, solicitation, or sale would be unlawful before the registration or qualification under the securities laws of that jurisdiction.

The company's statements regarding its future business growth are forward-looking and subject to risks and uncertainties. Factors that could affect actual results include the company's ability to become profitable, customer acceptance of new products, the impact of COVID-19 and related measures, demand for products, customers' economic conditions, competition, and general economic conditions.

The information provided in this article is based on a press release statement from Treasure Global Inc.

In other recent news, Treasure Global Inc has been actively reshaping its corporate structure and strategic partnerships. The company has formed a significant partnership with Credilab Sdn. Bhd. to foster mutual growth, although the specific details of this agreement remain undisclosed. Alongside these developments, there have been several changes within the board of directors, including the departure of Mr. Anand Ramakrishnan, Marco Baccanello, Chai Ching "Henry" Loong, Joseph "Bobby" Banks, and Jeremy Roberts.

In their place, Treasure Global has welcomed Chan Wai Kuan, Leong Wei Ping, Anand Ramakrishnan, Carlson Thow, and Dr. Darren Tan Kok Pin to the board. Notably, Carlson Thow has also assumed the role of CEO. Amid these changes, the company strategically withdrew its S-1 Registration Statement with the U.S. Securities and Exchange Commission, citing challenging market conditions.

Treasure Global has also embarked on a collaborative venture with TikTok, integrating TikTok Shop with its ZSTORE platform, a part of the ZCITY Super App. This move is aimed at enhancing the online shopping experience for ZCITY's 2.7 million users. These recent developments reflect Treasure Global's ongoing efforts to strengthen its corporate governance and adapt to changing market conditions.

InvestingPro Insights

Treasure Global Inc's recent completion of its ATM Offering program aligns with several key financial metrics and trends highlighted by InvestingPro. The company's decision to raise capital through this offering is particularly noteworthy given its current financial position.

According to InvestingPro data, Treasure Global has been experiencing significant financial challenges. The company's revenue for the last twelve months as of Q3 2024 stood at $37.03 million, with a concerning revenue growth decline of -47.39% over the same period. This decline is even more pronounced in the quarterly figures, with a -91.21% revenue drop in Q3 2024.

An InvestingPro Tip indicates that Treasure Global is "quickly burning through cash," which provides context for the company's decision to pursue the ATM Offering. The raised capital of approximately $2.99 million could be crucial for addressing this cash burn issue and supporting the growth initiatives mentioned in the article.

Another relevant InvestingPro Tip suggests that Treasure Global "holds more cash than debt on its balance sheet." This positive aspect of the company's financial structure might have made the ATM Offering a more attractive option for raising capital compared to taking on additional debt.

It's worth noting that InvestingPro offers 15 additional tips for Treasure Global, providing a more comprehensive analysis of the company's financial health and market position. These insights could be valuable for investors looking to understand the full picture of Treasure Global's current situation and future prospects.

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