Healthway receives net proceeds from $10m convertible notes issue

The Healthway Medical Corp Clinic at Block 201D Tampines Street 21.
The Healthway Medical Corp Clinic at Block 201D Tampines Street 21.ST PHOTO: LAU FOOK KONG

SINGAPORE - Healthway Medical Corporation (HMC), which runs Singapore's largest private clinic chain, said on Monday (March 27) that it has received the initial net proceeds from the first tranche of its convertible notes issue of principal amount of S$10 million to Singapore-based private equity firm Gateway Partners.

HMC has said the net proceeds from the first tranche wil go to meet immediate liquidity needs, including settling salaries and supporting the restoration of normal payment schedules to medical staff and vendors.

The conversion shares will be issued at a price of S$0.03384 each, HMC said in a filing with the Singapore Exchange. Based on HMC shares' close of S$0.043 on Friday, the new shares were converted at a discount of 21.3 per cent.

HMC plans to issue a second tranche of convertible notes for S$60 million to Gateway, that will require shareholders' approval.