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Clearbridge to raise S$11 million in convertible bond issuance to fund acquisitions
INTEGRATED healthcare company Clearbridge Health is looking to raise S$11 million through a convertible bond issuance to seize acquisition opportunities for medical clinics and centres and laboratories in South-east Asia. At the same time, the capital raising will enable it to preserve its existing cash for other organic expansion in the region, it said.
On Thursday, Clearbridge said that it has signed a subscription agreement to issue S$11 million in bonds. The bonds will bear an interest of 7 per cent per annum, and are convertible by bondholders into new shares any time during the three-year tenure at a conversion price of S$0.28 per conversion share.
This represents a premium of 78.1 per cent to the volume-weighted average price for trades done on Jan 31, 2019, the full market day on which the subscription agreement is signed, it said.
If fully converted, the conversion shares will represent about 7.4 per cent of the company’s enlarged share base.
Clearbridge plans to use part of the proceeds to complete the proposed investment in PT Indo Genesis Medika, announced in August 2018. The remaining funds raised will be used for mergers and acquisitions, joint ventures, strategic collaborations and/or investment as well as general working capital purposes.
The convertible bonds have been offered to corporate and private investors that includes Coop International, an investment company and a subsidiary of Singapore-listed Bonvests Holdings.
Members of the Clearbridge’s management team, including its non-executive, non-independent chairman Johnson Chen; executive director and CEO Jeremy Yee; chief commercial officer Jonathan Liau; chief business officer Simon Hoo; and other employees of the company have subscribed for the bonds.
Mr Yee, who has committed S$1 million to subscribe for the bonds, said the management’s participation in this exercise reflected the team’s confidence in the growth prospects of the group.The proposed subscription of the bonds by Mr Yee and Mr Chen will be subject to shareholders’ approval at an extraordinary general meeting to be convened. The subscriptions by the other investors, which will be on the same terms, do not require shareholders’ approval.