The proceeds from the rights issue was originally intended to be used for the company’s working capital purposes. However, Biolidics’ board of directors says the reallocation will enable the group to meet its debt obligations on a timely basis.
On Nov 23, Biolidics partially settled $800,000 of the deferred consideration by way of cash using the net proceeds reallocated from the rights issue proceeds.
The outstanding figure of some $1.34 million will be payable to Clearbridge BSA within two days of receiving the proceeds from Zhu Hua’s proposed subscription of 98,500,000 new Biolidics shares.
Shares in Biolidics closed flat at 1.3 cents on Nov 23.
