Yahoo Finance Singapore Institute of Advanced Medicine Holdings to repay $3.4 million loan by issuing new shares at 9 cents each
The company was listed on Feb 16 at 23 cents and closed at 10 cents on March 15
Newly-listed Singapore Institute of Advanced Medicine Holdings plans to repay loans amounting to $3.4 million by issuing new shares to the creditors at 9 cents each.
According to the company on March 17, under terms of the loan, it can choose to repay this group of creditors by issuing them new shares at a 10% discount off the volume-weighted average price per share of five consecutive market days ending on the full market day on which the company
exercises its option to convert the loan.
The company, led by executive director and CEO Dr Djeng Shih Kien, was listed on Feb 16 at 23 cents and closed at 10 cents on March 15.
To repay these creditors, the company will be issuing 33.3 million shares to creditor ISQuare, which loaned $3 million.
In addition, it is issuing 1.11 million shares each to the following lenders who loaned the company $100,000 each. They are Lee Ting Ni, Dr Yeo Khee Quan, Anthony Lim Gek Seng and Low Ming Wah.
By repaying these creditors via new shares instead of cash, the company can conserve cash, improve its cash flow and increase working capital to fund general overheads, financing requirements and other operating expenses.
The new shares will increase the company's share base by 3.75% to around 1.045 million shares.
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