Don Agro International’s Bold Push Into Russian Oncology Market: Major Milestones & Asset Update

Key Highlights for Investors

• Significant Progress on Russian Medical Acquisition: Don Agro is advancing its acquisition of a network of expert oncology clinics in Russia under the “Euroonco” brand, marking a transformative shift in its business direction.
• Asset Valuation and Cash Position: As of 30 September 2025, the company reports robust net assets of S\$65.3 million and a healthy cash position of S\$23.5 million.
• Regulatory Approvals Secured: The company has obtained crucial waivers and extensions from the Singapore Exchange (SGX) related to the acquisition and continued trading, removing significant regulatory uncertainty.
• Deployment of Funds: Over S\$34.5 million paid as consideration for acquisition; an additional S\$3.8 million short-term loan extended to the target group for expansion.
• Pending Shareholder Circular: Audits and due diligence are underway; a shareholder circular will be distributed ahead of an extraordinary general meeting (EGM) to approve the acquisition.

Full Details: Asset Valuation and Cash Utilisation

Don Agro International Limited has provided investors with its monthly asset valuation and cash utilisation update as at 30 September 2025. The company’s financial position remains strong, with total assets standing at S\$66.8 million and net assets of S\$65.3 million. Notably, cash and cash equivalents are reported at S\$23.5 million, underscoring significant liquidity even after recent major payments.

In September 2025, the company earned S\$395,000 in interest income, while experiencing a negative foreign currency translation adjustment of S\$470,000. Operating expenses for the month included S\$403,000 in general and administrative costs, with overall payments totalling S\$404,000. The closing cash balance as at the end of September is S\$23.5 million.

Strategic Acquisition: Expansion Into Russian Oncology Clinics

The most transformative update is Don Agro’s push into the Russian healthcare sector. In September 2024, its subsidiary JSC Tetra entered into agreements to acquire 99.99% of 812 Capital LLC and 11.5% of Centre for Innovative Medical Technologies, LLC (collectively, the “Target Group”). The Target Group operates a network of “Euroonco” branded oncology clinics, providing advanced cancer diagnostics and treatment services in Moscow, Saint Petersburg, and Krasnodar.

Following extensive regulatory processes, Don Agro has secured several critical approvals from the Singapore Exchange:

• Waivers for cash utilisation and escrow requirements
• Approval for continued trading during the acquisition process
• Waiver from needing to disclose pro forma financial statements of the enlarged group, simplifying the acquisition disclosure process

By March 2025, the company had remitted RR 2.22 billion (approximately S\$34.5 million) to the Target Group’s vendors, marking a significant financial commitment and progress milestone. In May 2025, JSC Tetra provided an additional short-term loan of RR 236 million (approx. S\$3.8 million) to fund the Target Group’s acquisition of “Uni Medica,” a group of polyclinics in Moscow. This move signals an aggressive expansion strategy and underlines Don Agro’s ambitions to become a major player in the Russian private healthcare sector.

Regulatory and Shareholder Developments

On 2 July 2025, SGX granted Don Agro a six-month extension to meet new listing requirements under Rule 1017(2) of the Catalist Rules, allowing more time to complete the acquisition and related compliance work. Auditors and legal advisors are currently conducting due diligence, and a comprehensive circular for shareholders is being prepared in accordance with SGX requirements. The circular will be distributed ahead of an EGM, giving shareholders the opportunity to vote on the proposed acquisition.

As of September 2025, the company reports no further milestones or updates regarding the acquisition, but confirms that the process remains active and ongoing.

What Shareholders Should Watch

• Transformative Transaction: The acquisition marks a dramatic shift from Don Agro’s traditional business, potentially exposing it to new risks, regulatory environments, and revenue streams. This could significantly impact valuation and share price depending on execution and market reception.
• Major Outlay of Capital: The sizeable cash outflows (over S\$38 million in total) represent a substantial investment and could affect liquidity if the new business does not perform as expected.
• Regulatory Risks: While key waivers and extensions have been obtained, the deal is still pending final shareholder approval and completion of due diligence. Any negative findings or shareholder rejection could have material implications.
• Pending Shareholder Vote: All eyes will be on the upcoming EGM, as shareholder approval is required to finalise the acquisition and set Don Agro’s future direction.

Investor Takeaway

Don Agro International’s planned entry into the Russian oncology market is a high-stakes, potentially transformative event. Investors should monitor regulatory filings, the pending shareholder circular, and the outcome of the EGM closely. The company’s strong cash position and regulatory progress support confidence, but the scale of the investment and sector shift introduces new risks and potential rewards.

Disclaimer: This article is for informational purposes only and does not constitute financial advice or a recommendation to buy or sell any securities. Investors are advised to conduct their own research and consult their financial advisor before making any investment decisions. The information presented is based on company disclosures as of 31 October 2025 and may be subject to change.

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