AJJ Medtech Holdings Launches S\$918,000 Private Placement to Fuel MedTech Expansion and Working Capital

Summary: Major Fundraising, New Investors, and Strategic Growth

AJJ Medtech Holdings Limited, a Singapore-based healthcare technology group, has announced a significant private placement of 127,499,998 new ordinary shares, raising approximately S\$918,000 (before expenses). The Placement, which was unveiled on 3 November 2025, is positioned to accelerate the company’s business expansion, commercialisation of its medical technology portfolio, and strengthen its working capital for scaling supply and delivery under national healthcare tenders. This major capital injection, together with details of new investor participation and shareholding changes, presents potential price-sensitive developments that investors need to scrutinize.

Key Details of the Private Placement

• Number of Shares Issued: 127,499,998 new ordinary shares (Placement Shares).
• Price per Placement Share: S\$0.0072, representing a 10% discount to the last traded VWAP of S\$0.0080 on 31 October 2025.
• Total Gross Proceeds: S\$918,000; Net Proceeds after expenses: S\$855,500.
• No Placement Agent: The Company did not engage a placement agent; some investors were introduced by an independent third-party introducer (Zen Lau Zi Hong), who receives a 5% introducer fee on a subset of the Placement.
• Use of Proceeds: 20% for business expansion (commercialisation and market expansion of MedTech products), 80% for general working capital, particularly to support scaling of consumables delivery under national healthcare tenders.
• Regulatory Compliance: The Placement is made under Section 272B of the Securities and Futures Act 2001 and does not require a prospectus.

Detailed Breakdown: Placement Share Allocation

Important Shareholder and Shareholding Changes

• Placement Shares: Represent ~8.48% of existing issued shares (1,502,938,302) and 7.82% of enlarged share capital (1,630,438,300) post-placement.
• Largest Shareholder: Dr Zhang Jian remains the controlling shareholder with no change in controlling interest.
• Notable New and Existing Shareholder Participation: Chua June Gay’s shareholding jumps significantly from 1.90% to 4.04% post-placement; other placees see notable increases in shareholdings.
• No Change in Board: No directors are appointed as a result of the Placement.

Conditions, Timeline, and Regulatory Approvals

• The Placement is subject to several conditions, including SGX-ST approval, the continued validity of the general share issue mandate from the 2025 AGM, and no legal or regulatory prohibitions.
• Completion for each Placee can proceed independently, not conditional on the others’ completion.
• If conditions are not fulfilled within six months of the agreement (the Long-Stop Date), the Placement agreement with the relevant Placee lapses.
• An application for listing and quotation of the Placement Shares on SGX Catalist will be submitted, and further announcements will follow upon approval.

Financial Effects: Dilution, NTA, and Loss Per Share

• Pro Forma Share Capital: Increases from S\$46.36 million to S\$47.28 million post-placement.
• Net Tangible Assets (NTA) per Share: Improves marginally from (S\$0.10) to (S\$0.09) per share, despite the company being in a net liability position.
• Loss Per Share (LPS): Diluted from (S\$0.28) to (S\$0.25) per share, assuming full-year effect and excluding placement expenses.

Strategic Rationale and Potential Share Price Impact

• This Placement is aimed at accelerating business growth, particularly commercialisation of MedTech products (healthcare automation, elderly-care solutions), and scaling up supply chain capabilities for national healthcare tenders.
• The strengthened financial position increases flexibility to capture high-quality opportunities, improve operational capacity, innovate in regulated MedTech, and respond to Singapore’s healthcare priorities, including digital transformation and ageing support.
• The Placement avoids the need for a specific shareholder vote as it falls within the general mandate approved at the 2025 AGM.
• Directors confirm that, with or without the Placement, current working capital is sufficient, but the Placement materially enhances the Group’s ability to pursue growth and resilience.
• Potential Price Sensitivity: The Placement’s discount to market price, dilution effects, and addition of significant new investors can be share price moving events. Investors should note the possible market reaction to the increased float and strategic use of funds for rapid scaling and tender fulfilment.

Other Material Disclosures

• The Placement was executed without a placement agent; three investors were introduced via an independent third party (receiving a S\$18,000 introducer fee).
• Placees have warranted that they are not acting in concert and are not seeking to obtain or consolidate effective control of the Company.
• The Company undertakes to make periodic and detailed announcements on the use of net proceeds, with breakdowns for working capital application and status reports in its financial statements and annual report.
• No director or substantial shareholder (other than through their shareholdings) has any direct or indirect interest in the Placement.

Investor Advisory and Cautionary Statement

Shareholders are advised to exercise caution when trading AJJ Medtech shares. The Placement is subject to regulatory and contractual conditions, and there is no certainty it will be completed as described. Investors should closely monitor company announcements and seek professional advice if in doubt about their investment decisions.

Disclaimer: This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell securities. The information is based on the company’s announcement and may be subject to change. Please consult a professional advisor before making any investment decisions.

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