CATALIST-LISTED orthopaedic services provider Asian Healthcare Specialists (AHS) disclosed on Monday that it has entered an investment agreement with Vanda 1 Investments, which is managed and controlled by Temasek Holdings unit Heliconia Capital Management.
AHS is proposing to issue a zero-coupon convertible bond with a principal sum of S$5 million due in 2021, convertible in whole or in part into fully-paid ordinary shares at 25 Singapore cents per conversion share, subject to adjustments.
AHS is also proposing to grant a non-listed share option, to be exercised in whole or in part, carrying the right to subscribe for such number of ordinary shares for an aggregate consideration of S$5 million at 32.5 Singapore cents per option share, which is subject to the adjustment events.
The conversion price and option price represent premiums of 0.2 per cent and 30.3 per cent respectively over the volume-weighted average price of 24.95 Singapore cents on Oct 12. The shares would represent approximately 10.9 per cent of the enlarged issued share capital of AHS after their issue and allotment, assuming that Vanda 1 fully converts the convertible bond and fully exercises the option.
The estimated net proceeds are approximately S$9.92 million.