Rectitude Holdings Announces $32.6 Million Standby Equity Purchase Agreement to Launch a Bitcoin Treasury Strategy
Rectitude Holdings (NASDAQ:RECT) has entered into a $32.6 million Standby Equity Purchase Agreement (SEPA) with Constantinople Limited to launch a Bitcoin treasury strategy. The agreement allows Rectitude to issue shares at its discretion at a 2.5% discount to the lowest daily VWAP over three consecutive trading days.
The Singapore-based safety equipment provider plans to use the majority of the proceeds to purchase Bitcoin, viewing it as a store of value and inflation hedge. The SEPA involves notable crypto figures including Tian Jia as Lead Investor and former Tron co-founder Chen Zhiqiang. The company maintains flexibility in determining the timing and volume of share issuance, with no mandatory minimum drawdowns or penalties.
Rectitude Holdings (NASDAQ:RECT) ha siglato un Accordo di Acquisto di Azioni Standby (SEPA) da 32,6 milioni di dollari con Constantinople Limited per avviare una strategia di tesoreria in Bitcoin. L'accordo consente a Rectitude di emettere azioni a propria discrezione con uno sconto del 2,5% rispetto al VWAP giornaliero più basso calcolato su tre giorni di negoziazione consecutivi.
Il fornitore di dispositivi di sicurezza con sede a Singapore intende utilizzare la maggior parte dei proventi per acquistare Bitcoin, considerato come riserva di valore e protezione dall'inflazione. Il SEPA coinvolge figure rilevanti del mondo crypto, tra cui Tian Jia come investitore principale e l'ex cofondatore di Tron Chen Zhiqiang. La società mantiene flessibilità nel decidere tempi e volumi delle emissioni azionarie, senza obbligo di prelievi minimi o penalità.
Rectitude Holdings (NASDAQ:RECT) ha firmado un Acuerdo de Compra de Acciones Standby (SEPA) por 32,6 millones de dólares con Constantinople Limited para lanzar una estrategia de tesorería en Bitcoin. El acuerdo permite a Rectitude emitir acciones a su discreción con un descuento del 2,5% sobre el VWAP diario más bajo durante tres días de negociación consecutivos.
El proveedor de equipos de seguridad con sede en Singapur planea usar la mayor parte de los ingresos para comprar Bitcoin, considerándolo una reserva de valor y cobertura contra la inflación. El SEPA incluye a figuras destacadas del mundo cripto, entre ellas Tian Jia como inversor principal y el ex cofundador de Tron Chen Zhiqiang. La compañía mantiene flexibilidad para determinar el momento y el volumen de las emisiones, sin desembolsos mínimos obligatorios ni penalizaciones.
Rectitude Holdings (NASDAQ:RECT)는 Constantinople Limited와 함께 비트코인 재무 전략을 시작하기 위해 3260만 달러 규모의 스탠바이 지분 매입 계약(SEPA)을 체결했습니다. 이 계약에 따라 Rectitude는 연속된 3거래일 동안의 최저 일간 VWAP보다 2.5% 할인된 가격으로 자사 주식을 재량껏 발행할 수 있습니다.
싱가포르에 본사를 둔 안전 장비 공급업체는 수익금 대부분을 가치 저장 수단이자 인플레이션 헤지로 간주되는 비트코인 매입에 사용할 계획입니다. SEPA에는 메인 투자자인 Tian Jia와 트론 공동창업자 출신인 Chen Zhiqiang 등 주요 암호화폐 인사들이 참여합니다. 회사는 주식 발행 시기와 규모를 결정하는 데 있어 유연성을 유지하며, 최소 인출 의무나 벌칙 조항은 없습니다.
Rectitude Holdings (NASDAQ:RECT) a conclu un accord d'achat d'actions standby (SEPA) de 32,6 millions de dollars avec Constantinople Limited afin de lancer une stratégie de trésorerie en Bitcoin. L'accord permet à Rectitude d'émettre des actions à sa discrétion avec une remise de 2,5% sur le VWAP journalier le plus bas sur trois jours de négociation consécutifs.
Le fournisseur d'équipements de sécurité basé à Singapour prévoit d'utiliser la majeure partie des recettes pour acheter des Bitcoins, les considérant comme une réserve de valeur et une protection contre l'inflation. Le SEPA implique des acteurs crypto notables, dont Tian Jia en tant qu'investisseur principal et l'ancien cofondateur de Tron, Chen Zhiqiang. La société conserve la flexibilité de déterminer le moment et le volume des émissions d'actions, sans tirages minimums obligatoires ni pénalités.
Rectitude Holdings (NASDAQ:RECT) hat eine Standby Equity Purchase Agreement (SEPA) über 32,6 Millionen US-Dollar mit Constantinople Limited abgeschlossen, um eine Bitcoin-Treasury-Strategie zu starten. Die Vereinbarung erlaubt es Rectitude, nach eigenem Ermessen Aktien mit einem 2,5%igen Abschlag auf den niedrigsten täglichen VWAP über drei aufeinanderfolgende Handelstage auszugeben.
Der in Singapur ansässige Anbieter von Sicherheitsausrüstung plant, den Großteil der Erlöse zum Kauf von Bitcoin zu verwenden, das als Wertspeicher und Inflationsschutz angesehen wird. An dem SEPA sind bedeutende Krypto-Persönlichkeiten beteiligt, darunter Tian Jia als Hauptinvestor und der ehemalige Tron-Mitbegründer Chen Zhiqiang. Das Unternehmen behält sich die Flexibilität vor, Zeitpunkt und Umfang der Aktienausgabe zu bestimmen, ohne verpflichtende Mindestabhebungen oder Strafen.
- Flexible $32.6M SEPA with no mandatory drawdowns or penalties
- Strategic diversification into Bitcoin as inflation hedge
- Experienced crypto investors and leadership team involved
- Capital-efficient approach with only 2.5% share price discount
- Potential shareholder dilution through equity issuance
- Exposure to Bitcoin's price volatility
- No specific Bitcoin holding target established
- No hedging program in place for Bitcoin holdings
Insights
Rectitude's $32.6M SEPA to fund Bitcoin treasury strategy represents a significant shift in corporate treasury management with flexible capital deployment.
Rectitude Holdings has made a strategic pivot by establishing a $32.6 million Standby Equity Purchase Agreement (SEPA) primarily to build a Bitcoin treasury position. This arrangement with Constantinople Limited provides Rectitude with a flexible capital source they can tap at their discretion, with shares priced at just a 2.5% discount to the lowest 3-day VWAP.
This SEPA structure is notably advantageous compared to traditional equity raises as it avoids mandatory drawdowns, penalties, or fees for non-utilization. The agreement gives Rectitude complete control over timing and volume of share issuances, minimizing potential market disruption while optimizing capital deployment for Bitcoin acquisitions.
The company's Bitcoin strategy signals a sophisticated approach to treasury management, positioning Bitcoin as an inflation hedge and safe-haven asset. Management appears to be implementing a multi-pronged strategy that includes:
- Utilizing excess operational cash flow for Bitcoin purchases
- Potentially issuing additional equity/debt for further Bitcoin acquisition
- Maintaining flexibility to monetize Bitcoin holdings for corporate needs
- Exclusively focusing on Bitcoin rather than other cryptocurrencies
What's particularly significant is Rectitude's dual approach of advancing its core industrial safety equipment business while simultaneously adopting an inflation-resistant treasury strategy. This represents an emerging trend among public companies seeking alternatives to cash holdings that may depreciate in real terms. The involvement of Chen Zhiqiang, former Tron CTO, adds technical expertise to this initiative beyond mere financial positioning.
SINGAPORE, Sept. 08, 2025 (GLOBE NEWSWIRE) -- 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
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
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.
"As we advance our core business in the safety equipment industry and expand into clean energy solutions with the launch of our AIMS system, it is critical that we leverage opportunities to manage our resources to enable maximum shareholder value. Holding Bitcoin on our balance sheet represents a strategic move to safeguard shareholder value while positioning us for a digital future. The SEPA provides us with a flexible and efficient source of capital to support our Bitcoin treasury strategy, strengthen our balance sheet, and pursue strategic opportunities. By controlling the timing and use of the SEPA, we look forward to establishing a low-cost, capital-efficient Bitcoin treasury strategy that reflects our strong conviction in Bitcoin as a leading digital store of value for the future,” said Jian Zhang, Chairman, Chief Executive Officer, and Executive Director at Rectitude.
About Rectitude
Founded in 1997 in Singapore, Rectitude is principally involved in the provision of safety equipment, encompassing essential items such as personal protective clothing, gloves, safety footwear, personal fall arrest systems, portable fire extinguishers and traffic products. The Company also offers auxiliary products such as industrial hardware tools and electrical hardware required for construction sites. Rectitude’s products and solutions are marketed to a wide array of distributor networks and end markets, both in Singapore and increasingly throughout the Southeast Asian region, including Brunei, Cambodia, Malaysia, Indonesia, and Vietnam.
For more information, please visit the Company’s website: https://ir.rectitude.com.sg
Forward-Looking Statements
Certain statements in this announcement are forward-looking statements, including, but not limited to, the Company's proposed Offering. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs, including the expectation that the Offering will be successfully completed. Investors can identify these forward-looking statements by words or phrases such as “approximates,” “believes,” “hopes,” “expects,” “anticipates,” “estimates,” “projects,” “intends,” “plans,” “will,” “would,” “should,” “could,” “may” or other similar expressions. The Company undertakes no obligation to update or revise publicly any forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results and encourages investors to review other factors that may affect its future results in the Company's registration statement and other filings with the U.S. Securities and Exchange Commission.
For investor and media inquiries, please contact:
Rectitude
Investor Relations
Email: ir@rectitude.com.sg
Jackson Lin
Lambert by LLYC
Phone: +1 (646) 717-4593
Email: jian.lin@llyc.global
FAQ
What is the size of Rectitude Holdings' (RECT) SEPA agreement?
How will Rectitude Holdings (RECT) use the SEPA proceeds?
What is the discount rate for RECT's share issuance under the SEPA?
Who are the key investors in Rectitude Holdings' SEPA agreement?
Does Rectitude Holdings have a specific Bitcoin holding target?
