Singapore Institute of Advanced Medicine (SAM) Holdings has received the listing and quotation notice from the SGX-ST for the listing and quoting of 169,474,000 new shares on the Catalist board.
On Sept 30, the company announced that it would be undertaking a debt conversion and share placement exercise to strengthen its financial position and improve its cash flow.
The debt conversion involves conversion of the loan from Caterine Limited into new ordinary shares in the capital of the company, and the proposed placement of 19,748,000 new shares at a placement price of 3.5 cents per share to certain subscribers.
The company entered into a loan agreement on Dec 20, 2024 with Caterine Limited, who granted a loan of a principal amount of $5 million and extension of the maturity date to Dec 13, 2025.
The aggregate outstanding sum owed by the company to the lender is $5.24 million, and pursuant to the debt conversion deed, the lender has agreed to the repayment of the outstanding amount by way of conversion into 149,726,000 new ordinary shares at the issue price of 3.5 cents per debt conversion share.
Furthermore, SAM entered into subscription agreements with three entities for the allotment and issue of an aggregate 19,748,000 new shares at 3.5 cents per placement share.
The placement price represents a discount of about 8.85% to the weighted average price of 3.84 cents per share for trades done on Sept 29.
The placement shares represent approximately 1.86% of the existing share capital and approximately 1.60% of the enlarged share capital.
SAM said that this would benefit the company in a few ways. This includes improving the group’s cash flow to meet anticipated general working capital requirements; increasing resources and working capital available to the group to pursue new business opportunities as and when they arise; and reducing its indebtedness, gearing and loss per share.
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The company has since received listing and quotation notice from the SGX-ST, and the placement shares and debt conversion shares have to be placed out within seven market days from the date of the notice.
Shares in SAM closed 0.4 cents higher or 11.76% up at 3.8 cents on Oct 9.
