Accrelist to raise up to S$3.38m via proposed placement of shares, issue of warrants

CATALIST-LISTED Accrelist is planning to raise up to S$3.38 million through the placement of shares and issuance of warrants to facilitate its growth plans as it seeks to ride on the rising demand for medical aesthetics services.

In a filing to the Singapore Exchange on Wednesday, Accrelist said that it had entered into conditional placement letters with six placees to purchase or subscribe for 22 million ordinary shares at an issue price of S$0.07371, which represents a discount of 10 per cent over the volume-weighted average price of S$0.0819 for trades done on the Singapore Exchange on Monday this week.

The placees, who are private investors, were introduced to the company by a third party, who will receive an introduction fee of 3 per cent per placement share. This will be fulfilled through the issuance of up to 660,000 shares in Accrelist at the placement price.

In addition, the company has agreed to constitute 22 million non-listed, transferable warrants to the placees, on the basis of one warrant for every placement share subscribed. Each warrant carries the right to subscribe for one share at the exercise price of S$0.08 and are exercisable within one year from the date of issue.

The 22 million shares work out to 7.88 per cent of the company's issued share capital as at Wednesday, and 6.79 per cent of the company's enlarged share capital after taking into account the issuance of the placement shares, introducer shares and warrant shares.

Assuming that the placement shares are fully placed out and the warrants are fully exercised, Accrelist will raise S$3.38 million.

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Terence Tea, executive chairman and managing director of Accrelist, said: "We decided to undertake the proposed placement to strengthen the group's financial position and enable Accrelist to capitalise on growth opportunities in the medical aesthetics sector. As Covid-19 restrictions are gradually eased, we are encouraged by the demand for medical aesthetics services, which has returned to pre-pandemic levels."

Its unit Accrelist Medical Aesthetics (A.M Aesthetics) generated revenues of S$6.3 million for the financial year ended March 31, 2021, up from S$5 million in the prior financial year. It has expanded from four local clinics in 2018 to seven local clinics across Singapore and three overseas branches in Malaysia. In Singapore, it opened its Serangoon Central clinic and flagship Raffles City Shopping Centre clinic earlier this year.

Meanwhile, A.M Aesthetics' existing clinics at Bedok Mall and SingPost Centre clinics are expected to shift to bigger spaces at both malls by the end of October, while the group continues to expand its clinical skincare products business, A.M Skincare, to broaden its revenue streams, it said.

Shares in Accrelist were halted from trading on Tuesday morning, pending the release of the announcement.