Singapore eDevelopment inks agreement for proposed US$50m share swap

CATALIST-LISTED Singapore eDevelopment on Monday said it has entered into a share exchange agreement with Document Security Systems (DSS) under a proposed US$50 million share swap.

Under the agreement, Singapore eDevelopment is selling 100 per cent of its subsidiary Impact BioMedical to DSS in return for DSS shares.

Impact BioMedical is a subsidiary of Global Medical, which is in turn a subsidiary of Singapore eDevelopment.

Following an issue of 13,896,069 shares by Impact BioMedical to Global BioMedical as payment for sums owing to Global BioMedical, the sale shares now comprise 13,897,069 shares in Impact BioMedical.

The amount to be paid by DSS for the sale shares is US$50 million.

About US$3.1 million will be paid by way of the issuance of 14.5 million new DSS shares, representing about 18.93 per cent of the total issued and paid-up share capital of DSS on an enlarged basis.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

The remaining US$46.9 million will be paid by way of an allotment and issuance of perpetual convertible bonds to Global BioMedical.

In a bourse filing on Monday, Singapore eDevelopment noted that there is no certainty or assurance that the proposed share swap will be completed.

Key conditions to the closing of the deal include receipt by DSS of the audited financials of Impact BioMedical, as well as DSS and Singapore eDevelopment obtaining approvals from their respective shareholders.

Shares in Singapore eDevelopment closed at 4.3 Singapore cents on April 30, down 0.2 cent or 4.4 per cent.

Singapore eDevelopment is primarily involved in property development and investments primarily in the US and Western Australia; information technology-related businesses; development, research, testing, manufacturing, licensing and distribution of biomedical products; and investment activities.