Healthway receives net proceeds from S$10m convertible notes issue

HEALTHWAY Medical Corporation (HMC), which runs Singapore's largest chain of clinics, on Monday said it has received the initial net proceeds from the first tranche of its convertible notes issue to Singapore-based private equity firm Gateway Partners, valued at S$10 million.

The conversion shares will be issued at a price of S$0.03384 each. Shares of Healthway closed at S$0.043 on Friday. Based on Friday's closing price, the shares were converted at a discount of just over 20 per cent.

The issue of the second tranche of convertible notes, comprising a principal amount of S$60 million, requires shareholders' approval.

The convertible notes from Gateway have come under scrutiny in recent weeks, and Healthway this month said it had worked with Gateway to revise the terms of the notes issued. Previously, the second tranche of S$60 million were non-convertible notes.

It stuck with the deal, choosing it over a loan offer by Lippo Group's entity to solve its cash crisis. Lippo, which is circling the company with a takeover offer of S$0.042 per share, had earlier offered a S$10 million loan to HMC to pay its doctors and nurses.