Clearbridge Health’s Strategic Share Placement: A Push for Growth and Stability

Clearbridge Health Limited has announced a substantial proposed placement of 309,500,000 new ordinary shares, marking a strategic move to bolster its financial standing. On December 19, 2024, the company entered into a subscription agreement with Ong Choon Yi, a seasoned corporate finance professional, who will subscribe to these shares at S\$0.0031 per share. This transaction is valued at approximately S\$959,450.

The issue price represents the volume-weighted average price of the company’s shares on the Singapore Exchange as of the agreement date. Notably, this price was determined through arm’s length negotiations, reflecting both the company’s recent share trading performance and prevailing market conditions.

Ong Choon Yi, the subscriber, is not only a Vice President at Maybank Securities Pte Ltd but also holds significant roles in other companies, displaying extensive experience in corporate finance and fund-raising activities. His subscription will increase his shareholding from 0.11% to 14.36% of the enlarged share capital.

Shareholders should note that the completion of this placement is subject to several conditions, including obtaining necessary approvals from the Singapore Exchange and the company’s board. The placement is expected to increase the company’s share capital from 1,859,224,056 to 2,168,724,056 shares, representing an approximate 16.65% increase.

The proceeds from this placement are earmarked for general working capital, prioritizing the repayment of existing borrowings and operational expenses. The company also sees this as an opportunity to engage with bondholders potentially interested in converting outstanding bonds at the placement’s issue price, aligning with Clearbridge’s strategic objectives for sustainable growth.

Importantly, the announcement assures shareholders that the proposed placement will not result in any transfer of controlling interest in the company, as defined by the Catalist Rules.

These developments could be significant for shareholders and may influence Clearbridge Health’s share value, given the potential for improved financial flexibility and operational stability. The company remains committed to transparency, promising periodic updates on the use of proceeds and any material developments.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Shareholders and potential investors should exercise caution and consult with financial advisors before making investment decisions based on this information.