1. INTRODUCTION
The Board of Directors of Reach Ten Holdings Berhad ("the Company") wishes to announce that the Company through its wholly-owned subsidiary, Reach Ten Communication Sdn Bhd ("RTC"), has investment exposure to Space Exploration Technologies Corp. ("SpaceX") via Alta Fund Management. The initial investment was made on 25 September 2025 with a total cash consideration of USD1,000,080 (equivalent to RM4.2 million).
The investment is channelled through AAF4 Class A-4 Participating Shares ("the Fund"), a fund managed by Alta, which provides investors with indirect exposure to underlying investments, including SpaceX, a private aerospace and satellite communications company headquartered in California, USA.
2. DETAILS OF THE INVESTMENT AND THE TARGET ENTITY
RTC subscribed to Class A-4 Participating Shares in AAF4. The Fund provides indirect economic exposure to a portfolio of underlying assets, which includes SpaceX.
SpaceX is a leading global aerospace entity specializing in rocket launching/manufacturing, satellite internet (Starlink), and space exploration. Based on its latest public funding rounds, SpaceX is valued at approximately USD 1.77 trillion.
The estimated indirect exposure is equivalent to approximately 4,167 SpaceX shares at the investment level following SpaceX's 5-for-1 stock split; this is expected to be approximately 20,835 SpaceX's shares.
The total consideration of USD1,000,080 was determined based on subscription terms of the Fund and fund-level pricing mechanics. Based on SpaceX's IPO reference price of approximately USD135 per share, the indicative value of the underlying exposure is approximately USD2.81 million.
The investment was made at an estimated entry price of USD240 per share, equivalent to approximately USD48 per share post-split. The investment is subject to a carried interest of 10% payable to the fund manager, as well as applicable management fees and allocation adjustments.
All valuation figures are indicative only and subject to confirmation by the fund manager, including carried interest, fees, allocation adjustments, and IPO settlement mechanics.
The investment is funded entirely via internally generated funds.
3. RATIONALE AND BENEFITS OF THE INVESTMENT
The investment presents a rare and compelling opportunity for the Group to gain financial and strategic exposure to the global space economy and frontier technology sectors. By utilizing the Alta Fund platform, the Group gains structured access to high-growth, late-stage private global monopolies like SpaceX, which are traditionally inaccessible to regional institutional investors. This allocation serves to maximize long-term shareholder value and diversify the Group's traditional revenue portfolio.
4. FINANCIAL EFFECTS OF THE INVESTMENT
This transaction involves zero issuance of new shares by the Company and will have no effect on capital or major shareholdings.
The investment is not expected to have any material immediate impact on the net assets per share and earnings per share of the Group for the financial year ending 31 December 2026. Future gains/dividends will be recognized in accordance with MFRS 9 Financial Instruments.
5. HIGHEST PERCENTAGE RATIO
The highest percentage ratio applicable to this transaction pursuant to Paragraph 10.02(g) of the Main Market Listing Requirements of Bursa Malaysia is 5.22%, computed based on the total investment amount against the net assets of the Group.
6. INTERESTS OF DIRECTORS AND SHAREHOLDERS
None of the Directors and/or major shareholders of the Group, or persons connected to them, have any direct or indirect interest in the above investment.
This announcement is dated 12 June 2026.