Disa signs non-binding term sheet to acquire medical company stake for S$5.5 million
The seller of the stake is a medical doctor who is not affiliated with Disa
CATALIST-LISTED Disa on Monday (Jan 13) announced that it signed a non-binding term sheet with a rheumatism and arthritis medical company and its sole shareholder, proposing to buy a 50 per cent stake in the medical company.
The stake’s purchase consideration will be S$5.5 million, made up of a cash consideration of S$3 million and S$2.5 million from the issuance of new ordinary shares in the company, said Disa in a bourse filing.
The new shares will be issued either at the last dealt share price of Disa on the completion date of the proposed acquisition, or the minimum price to be determined and defined in the binding sale and purchase agreement, whichever is higher.
The proposed acquisition is conditional upon the company completing its due diligence process, Disa obtaining all necessary director and shareholder resolutions, waivers and consents, as well as the company being able to raise the required funds.
The target company, which was not named in the bourse filing, operates a specialist medical centre for rheumatism and arthritis in Singapore. The seller of the stake is a medical doctor who is not affiliated with Disa.
The company said the seller will provide an undertaking to remain as a practitioner at the medical centre, as well as a shareholder with a 50 per cent stake in the medical company, for at least 10 years from the completion date of the proposed acquisition.
The term sheet is not legally binding and there will be no obligation to sell or purchase the shares of the target company until the sale and purchase agreement is signed, added Disa.
Shares of Disa dived 50 per cent or S$0.001 to S$0.001, before the announcement.
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