Singapore Paincare to issue 18m shares to Sian Chay Medical Institution

CATALIST-listed pain-care medical services group, Singapore Paincare Holdings (SPCH) will issue 18 million new ordinary shares at a price of S$0.22 per share to non-profit organisation Sian Chay Medical Institution, to "strengthen its value proposition of holistic end-to-end pain-care management".

With its S$3.96 million investment, Sian Chay will become a substantial shareholder of SPCH, with a 10.02 per cent stake in the enlarged share capital, said SPCH in a statement on Tuesday.

Sian Chay's full-time volunteer executive chairman Toh Soon Huat said the medical institution's prudent management has enabled it to build up a reserve to invest in pain care.

"We hope that Sian Chay's share of future dividends will yield steady returns that will help defray some operating costs or enable us to extend help to an even wider pool of beneficiaries," he said.

Sian Chay is a social-service agency registered with the Ministry of Health. It provides services such as traditional Chinese medicine (TCM) consultation, subsidised medicine, acupuncture treatment and tuina (Chinese therapeutic massage) to lower-income patients. It handles some 1,400 patient visits daily through its network of 14 branches.

The partnership will also benefit SPCH's and Sian Chay's respective pool of patients. For instance, SPCH's expansion into physiotherapy services and the partnership with Sian Chay will strengthen SPCH's value position in providing pain-care management services for its patients, said SPCH's chief executive officer Bernard Lee in a statement on Tuesday.

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"We are delighted to welcome Sian Chay aboard as a new substantial shareholder. Sian Chay's objective of contributing to the community through providing a high standard of TCM care is closely aligned with SPCH's focus on quality patient care and successful outcomes," said Dr Lee.

Sian Chay's Mr Toh has agreed to act as advisor to SPCH for an annual fee of S$1 (which will be donated to Sian Chay) to help build SPCH's corporate social responsibility profile and to help the company grow.

Shares of Singapore Paincare last traded on Nov 11 at S$0.20.