Rectitude Holdings Launches Bitcoin Treasury Strategy With $32.6M Equity Deal; Plans Major BTC Purchases

Rectitude Holdings Ltd. (NASDAQ:RECT, the "Company" or "Rectitude"))), a Singapore-based provider of safety equipment and related industrial products, today announced that it is initiating a Bitcoin treasury strategy via entering into a Standby Equity Purchase Agreement (the "SEPA") with Constantinople Limited, a British Virgin Islands Company led by Tian Jia, an experienced Bitcoin investor, as Lead Investor, and Chen Zhiqiang, former co-founder and CTO of Tron, the world largest public blockchain for stablecoin applications (together, the "Investors"). Subject to certain customary conditions, the SEPA grants the Company the option, at its sole discretion, to issue up to $32,625,000 (the "Commitment Amount") of its ordinary shares to Investors following the execution date of the SEPA and following the effectiveness of a registration statement on Form F-1 filed with the Securities and Exchange Commission registering the ordinary shares issuable pursuant to the SEPA.

The Company intends to use most of the proceeds from any sales under the SEPA for the purchase of Bitcoin, and the rest of the proceeds for general corporate purposes.

The purchase price of the ordinary shares sold to the Investors will be at a 2.5% discount to the lowest daily volume-weighted average price of the ordinary shares during the three consecutive trading days commencing on the trading day of the delivery of an advance notice by the Company.

Under the terms of the SEPA, the Company will determine the timing and number of shares sold through the delivery of advance notices to the Lead Investor. There are no mandatory minimum drawdowns under the SEPA, and no penalties or fees for not utilizing the Commitment Amount.

The Company's strategy with respect to Bitcoin includes the acquisition and long-term holding of Bitcoin through the use of cash flows from operations in excess of working capital requirements. From time to time, and subject to prevailing market conditions, the Company may also issue equity or debt securities, or pursue other capital-raising transactions, with the objective of using the net proceeds to purchase additional Bitcoin.

The Company has not established a specific target for the amount of Bitcoin it intends to hold. The Company will continue to evaluate market conditions in determining whether to engage in future purchases of Bitcoin. The Company's strategy further contemplates that it may, from time to time, sell Bitcoin for general corporate purposes, in connection with tax planning strategies permitted under applicable law, or in conjunction with additional capital-raising activities, including transactions that may be secured by its Bitcoin holdings. The Company may also evaluate opportunities to generate income or otherwise monetize its Bitcoin holdings.

The Company views Bitcoin as a reliable store of value and an attractive investment opportunity. The Company believes that Bitcoin's scarcity and finite supply support its potential as a hedge against inflation and as a safe-haven asset in periods of global instability. The Company further believes that the increasing global adoption and institutional acceptance of Bitcoin reinforce its status as a store of value. In light of Bitcoin's unique characteristics, which the Company believes distinguish it not only from fiat currency but also from other digital assets, the Company does not currently intend to acquire cryptocurrency assets other than Bitcoin. The Company does not presently maintain a hedging program with respect to its Bitcoin holdings; however, it may, from time to time, consider the use of hedging strategies as part of its broader treasury management activities if deemed appropriate.