Cordlife Group will raise some $8.2 million through the proposed placement of 51.2 million new shares in the company at 16 cents apiece. The number of shares represents about 20% of Cordlife’s total shares. It will represent 16.6% of the enlarged capital. The issue price represents a 4.9% premium to the two-week volume weighted average price of 15.25 cents per share for trades done on the Singapore Exchange S68 (SGX) on April 15.
On April 16, Cordlife entered into two separate subscription agreements with Charming Global Enterprises and high net worth individual (HNWI) Darren Ng Junwei. Charming Global Enterprises is owned by Jiao Shuge, who is the co-founder of CDH Investments, a Beijing-based private equity and venture capital firm.
Under the agreements, Charming Global Enterprises will subscribe for 44.54 million shares in Cordlife for a total consideration of $7.1 million while Ng will subscribe for 6.7 million shares for $1.1 million.
According to Cordlife, the parties expressed their interest in subscribing for new shares in the company in March (Charming Global Enterprises) and April (Ng).
Under the agreements, the proposed subscription is conditional upon the receipt of the listing and quotation notice from the SGX. Trading of the shares must not be suspended by the exchange and the shares will have to remain listed on the exchange’s Mainboard. The allotment, issue and subscription of the shares must also not be prohibited by any statute, order, rule, regulation after the date of the subscription agreement.
The proposed placement comes as Cordlife remains under investigation after its cord blood units in Singapore were mishandled.
See also: New World Development’s CEO Eric Ma to leave after two months in succession saga twist
According to the company, the net proceeds from the placement will be deposited with banks and, or financial institutions. They may also be invested in short-term money market instruments and, or marketable securities, or used for any other purposes on a short-term basis.
Shares in Cordlife have remained under trading halt; the company requested for a further extension on April 8. The company’s shares last traded at 14.8 cents.
