Livingstone Health has proposed to place 55.56 million shares at an issue price of 2.7 cents per share. The consideration from the placement will amount to some $1.5 million.
The proposed placement is not underwritten and will be undertaken by way of an exempt offering in Singapore in accordance with Section 272B of the Securities and Futures Act (SFA).
The issue price represents a discount of around 8.78% to the volume weighted average price (VWAP) of 2.96 cents for the shares traded on Feb 7.
The placement shares represent about 12.7% of the company’s existing share capital of 436.39 million shares. It will represent about 11.3% of the enlarged share base thereafter.
According to Livingstone, the proposed placement will strengthen its balance sheet in its bid to explore strategic acquisition plans and, or new business opportunities. The group is also pursuing organic growth and expanding its medical specialist teams through new recruitments to support the growing demand in healthcare services, it says.
On a pro forma basis, the group’s net tangible assets (NTA) per share would have been at 0.61 cents instead of 0.36 cents after the proposed placement should it have been completed on March 31, 2023.
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The pro forma earnings per share (EPS), if the placement was completed on April 1, 2022, would’ve been 0.15 cents instead of 0.17 cents.
Shares in Livingstone closed at 2.5 cents on Feb 9.
