Don Agro International Eyes Major Transformation with Oncology Business Acquisition and Strong Cash Position

Key Financial Highlights for August 2025

• Net assets stand at S\$66.3 million as of 31 August 2025, underscoring the group’s continued financial robustness.
• Cash and cash equivalents at S\$24.0 million, following a month of modest operational outflows and a foreign currency translation adjustment.
• Receivables remain high at S\$43.4 million, suggesting substantial pending settlements or ongoing business activities.
• Liabilities remain minimal at S\$1.6 million, with trade and other payables the largest single obligation.
• All figures remain unaudited at this stage.

Cash Utilisation and Movements

• August began with S\$24.6 million in cash, with only minor receipts from interest income and a negative adjustment from currency translation.
• Payments during the month included S\$326,000 in general and administrative expenses and S\$1,000 in bank charges.
• The month closed with S\$24.0 million in cash, reflecting the group’s careful cash management and low monthly burn rate.

Major Corporate Milestones – Strategic Acquisition of Oncology Business

The most crucial development for Don Agro International is its proposed acquisition of a majority stake in a leading Russian oncology network, marking a potentially transformative shift in business direction.

• In September 2024, Don Agro’s subsidiary, JSC Tetra, signed agreements to acquire 99.99% of 812 Capital LLC and 11.5% of Centre for Innovative Medical Technologies, LLC, collectively known as the “Target Group.”
• The Target Group operates under the “Euroonco” brand, a network with expert oncology clinics and service centres across Moscow, Saint Petersburg, and Krasnodar. The business offers comprehensive cancer diagnostics, treatment, and palliative care.
• This acquisition is a major pivot from Don Agro’s historical business, indicating a shift towards the fast-growing healthcare sector in Russia.
• In March 2025, Don Agro remitted RR 2.22 billion (approx. S\$34.5 million) as consideration advance payments for the medical business acquisition. This significant capital outlay signals the company’s strong commitment to the transaction.
• The group’s auditors and legal counsel are conducting due diligence, and a shareholder circular is in preparation. The acquisition remains subject to shareholder approval at an upcoming extraordinary general meeting.
• In May 2025, JSC Tetra extended a short-term loan of RR 236 million (approx. S\$3.8 million) to the Target Group to fund an acquisition of the “Uni Medica” polyclinic network in Moscow, further advancing expansion in Russia’s medical sector.

Regulatory and Listing Status Updates

• Don Agro was classified as a “cash company” under SGX Catalist Rule 1017(1)(a), prompting a requirement to acquire a new business or risk delisting.
• The company has received key regulatory waivers from SGX-ST, including a Cash Utilisation Waiver, Escrow Requirement Waiver, and a waiver from disclosing pro forma financials of the enlarged group—removing significant hurdles for the acquisition and continued trading.
• In July 2025, the SGX-ST granted Don Agro a six-month extension to meet new listing requirements, providing vital breathing room to complete the acquisition and related obligations.

What Should Shareholders Watch?

• This acquisition marks a radical transformation for Don Agro, potentially changing its sector profile and revenue streams. The move into Russian healthcare could bring higher growth but also new risks.
• The significant outflows for acquisition and lending demonstrate strong intent, but shareholders should be alert to integration, regulatory, and geopolitical risks linked to the Russian market.
• The company’s compliance with SGX requirements and the pending EGM for shareholder approval are critical steps—any delays or issues could impact share value.
• The finalisation of the acquisition, along with further disclosure in the upcoming shareholder circular, will be major share price catalysts.

Conclusion: Potentially Transformative, High-Stakes Bet on Russian Healthcare

Don Agro International’s proposed acquisition, regulatory progress, and strong cash position create a potential inflection point for the group. Investors should closely monitor developments, especially the EGM outcome and completion of due diligence. The group’s pivot to healthcare could re-rate the stock, but also introduces new operational and country-specific risks.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own due diligence and consult independent advisors before making investment decisions. The author and publisher assume no responsibility for any losses arising from reliance on this report.

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