SINGAPORE – Catalist-listed Clearbridge Health said on Monday (July 29) that it looks to raise $11.34 million through various subscription agreements for 80.5 million placement shares at $0.141 apiece.
This represents a discount of around 9.96 per cent to its volume-weighted average price of $0.1566 per share for all trades done on July 26, the full market day before the subscription agreements were signed.
Out of the $11.29 million in net proceeds, around 70 per cent or $7.9 million will be used for expansion via mergers and acquisitions, joint ventures, strategy collaboration and investment “organically in Asia”. Meanwhile $3.39 million or 30 per cent will go into general working capital purposes. This is after deducting $58,000 in professional fees and expenses.
Coop International, a subsidiary of existing investor Bonvests Holdings, has subscribed for 4.78 per cent of the shares for $2.5 million, and is expected to own 7.19 per cent of the enlarged share capital following the placement, and become a substantial shareholder.
Mainboard-listed Bonvest is an investment company with businesses in property development and investment, hotel ownership and management, and waste management and contract cleaning of buildings.
Other share placement subscribers include investment holding company Macondray Company Limited and other private investors who are mainly existing shareholders or existing bondholders, except for Koh Teak Huat, Sam Yuzhe and Lai Chien Chou.
As at Monday, the company has an issued and paid-up share capital of 494.1 million shares and outstanding convertible bonds convertible into 39.3 million shares. When allotted and issued, the placement shares will represent around 16.28 per cent of the existing issued and paid-up share capital of the group, and 15.08 per cent of the share capital of the group on a fully diluted basis.
The enlarged share capital will be 574.6 million shares, assuming no further shares are issued prior, of which the placement shares will represent around 14 per cent and 13.1 per cent on a fully diluted basis.
Clearbridge Health chief executive and executive director Jeremy Yee said: “The funds raised in the share placement will allow us to significantly enhance our financial capabilities to grow our healthcare assets and presence across Asia, where healthcare demand is increasing and driven by population growth rates, and increasing terminal and chronic disease patterns matching western markets.”
Clearbridge Health shares were trading at $0.152 on Monday, down 0.4 cent or 2.56 per cent as at 10.06am.