Medi Lifestyle Limited Announces Proposed Rights Issue, Shareholder Loan Set-Off, and Updated Use of Proceeds
Medi Lifestyle Limited (“the Company”) has unveiled a series of significant corporate actions that could materially impact its capital structure, financial position, and shareholder value. The Board has announced the proposed renounceable non-underwritten rights issue, a deed of set-off with its controlling shareholder, and the provision of irrevocable undertakings by major shareholders. These developments warrant close attention from investors.
Key Highlights of the Announcement
- Proposed Rights Issue: The Company will issue up to 189,051,006 new ordinary shares (“Rights Shares”) at an issue price of S\$0.02 per Rights Share, on the basis of one (1) Rights Share for every two (2) existing shares held by entitled shareholders as at the record date. Fractional entitlements will be disregarded.
- Listing and Quotation Approval: The Company has received the necessary listing and quotation notice for the Rights Shares. However, this should not be construed as an endorsement by the SGX-ST of the merits of the Rights Issue.
- Deed of Set-Off with Controlling Shareholder: On 4 June 2026, the Company entered into a deed of set-off with Mr. Chua Yi Hang, its controlling shareholder. Under this arrangement, Mr. Chua’s subscription monies for his portion of the Rights Issue (S\$947,695.64) will be satisfied by offsetting against part of the total debt owed to him by the Company, thus reducing the Company’s outstanding liabilities without cash outflow.
- Irrevocable Undertakings by Major Shareholders: Mr. Chua and other substantial shareholders, including Mr. Ong Gim Loo, Mr. Pek Choon Heng, Mr. Tan Ong Huat, and Director Ms. Ng Lee Eng, have given binding commitments to subscribe for their pro-rata entitlements in the Rights Issue. Collectively, these undertakings cover 107,084,782 Rights Shares (S\$2.14 million in value).
- Minimum and Maximum Subscription Scenarios:
- Minimum: Only the Undertaking Shareholders subscribe, resulting in S\$2.14 million gross proceeds (107,084,782 Rights Shares issued).
- Maximum: All entitled shareholders subscribe, raising S\$3.78 million gross proceeds (189,051,006 Rights Shares issued).
- Use of Proceeds: The Company will allocate funds to the following areas:
- Shareholder Loan Set-off (S\$948k)
- General working capital (S\$401k–2.04m, depending on scenario)
- Repayment of borrowings (S\$323k)
- Business development, strategic investments, acquisitions, and expansion (S\$250k)
Detailed Financial Impact
At the date of the Set-off Deed, Mr. Chua is owed a total of S\$1,504,000 by the Company, stemming from three separate loans. Upon completion of the Rights Issue:
- S\$947,695.64 of this debt will be extinguished via the set-off mechanism, reducing the Company’s liabilities and preserving its cash for operations.
- The remaining debt owed to Mr. Chua will stand at S\$556,304.36.
- No cash payment will be made by Mr. Chua for his participation in the Rights Issue—the transaction will be settled entirely by set-off.
- The arrangement is void if the Rights Issue does not proceed.
Shareholder Support and Financial Commitment
The Undertaking Shareholders (collectively holding about 56.64% of issued shares) have not only committed to the Rights Issue but, except for Mr. Chua (whose subscription will be via set-off), have already deposited their subscription monies into the Company’s bank account. No commission or additional benefits are being paid for these undertakings. This substantial support from insiders is a strong vote of confidence in the Company’s future and is likely to be viewed positively by the market.
Key Price-Sensitive Information for Shareholders
- Balance Sheet Improvement: The set-off mechanism will reduce the Company’s debt without cash outflow, improving its net asset position and potentially reducing interest expenses.
- Potential Dilution: If the Rights Issue is fully subscribed, the issued share capital will increase significantly, diluting existing holdings for shareholders who do not participate.
- Insider Confidence: The strong participation of major shareholders and directors signals their belief in the Company’s prospects.
- Working Capital and Growth: Net proceeds (after expenses) will be used to fund operations, repay borrowings, and pursue growth opportunities, which could drive future performance.
Cautionary Statement
Shareholders are urged to exercise caution when trading in the Company’s shares as there is no certainty that the Rights Issue will proceed as planned or that no changes will be made to its terms. Further details will be provided in the Offer Information Statement to be issued in due course.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should carefully review all official documents and consult their professional advisers before making any investment decisions. The Company has not received approval from the Singapore Exchange Securities Trading Limited (SGX-ST) regarding the merits of the Rights Issue, and the SGX-ST accepts no responsibility for the contents of this announcement.
美迪生活有限公司公布可转让配股、债务抵销协议及主要股东承诺
美迪生活有限公司（“公司”）宣布了一系列可能对其资本结构、财务状况和股东价值产生重大影响的企业行动。董事会公布了可转让非包销配股、与控股股东的债务抵销协议，以及主要股东的不可撤销承诺。投资者应密切关注这些发展。
公告重点
- 拟议配股：公司将以每股新股0.02新元的价格，按每持有两股现有普通股可获一股新配股的比例，发行最多189,051,006股新普通股（“配股”）。零碎配额将被忽略。
- 上市批准：公司已获得配股上市和报价通知，但这不应被视为新交所对本次配股的认可。
- 与控股股东的债务抵销协议：2026年6月4日，公司与控股股东蔡义恒先生签订了债务抵销协议，蔡先生认购配股应付金额（947,695.64新元）将通过抵销公司欠其部分债务来支付，从而无现金流出地减少公司负债。
- 主要股东不可撤销承诺：包括蔡义恒先生、王錦鲁先生、白春兴先生、陈翁发先生及董事黄丽英女士在内的主要和实质股东，已承诺按其配额全额认购配股，合计涉及107,084,782股（总值214万新元）。
- 最低与最高认购情景：
- 最低：仅承诺股东参与，募集214万新元（1.07亿配股）。
- 最高：所有有权股东参与，募集378万新元（1.89亿配股）。
- 募集资金用途：
- 股东贷款抵销（94.8万新元）
- 一般营运资金（40.1万至204万新元）
- 偿还公司借款（32.3万新元）
- 业务发展、战略投资及扩张（25万新元）
财务影响细节
截至债务抵销协议签署日，蔡义恒先生与公司间的未偿还债务总额为150.4万新元，来自三笔贷款。配股完成后：
- 94.77万新元债务将通过抵销机制注销，公司负债减少，现金流得到保留。
- 剩余债务为55.63万新元。
- 蔡先生参与配股无需现金支付，完全通过抵销处理。
- 如配股未能完成，抵销协议即失效。
股东支持与财务承诺
承诺股东（合计持股约56.64%）不仅承诺参与配股，除蔡先生外，其余已将认购款预存公司账户。公司未为承诺支付任何佣金或附加利益。这显示了管理层对公司未来的强烈信心，市场可能会给予积极评价。
股东需知的重要及可能影响股价的信息
- 资产负债表改善：债务抵销将无现金流出地减少公司债务，改善净资产状况并有望减少利息支出。
- 潜在稀释：若配股全部认购，股本将显著增加，未参与配股的股东持股将被稀释。
- 内部人信心：主要股东和董事的积极参与显示其对公司前景的信心。
- 营运资金及成长：扣除费用后的募集资金将用于营运、偿还债务及拓展业务，有望推动公司未来业绩。
风险提示
公司提醒股东及潜在投资者，配股的完成与条款可能发生变化，务必谨慎交易。配股的详细信息将在后续的《发行说明书》及公告中披露。
免责声明： 本文仅供参考，不构成投资建议。投资者应详细阅读公司正式公告，并在作出投资决策前咨询专业顾问。公司尚未获得新交所对本次配股的认可，新交所对公告内容不承担任何责任。
