SINGAPORE (March 27): Heathway Medical Corporation (HMC) last Friday received the initial net proceeds from the first tranche (T1 CN B) of its convertible notes issuance to Gateway Partners, the private equity firm.
This comprises a principal amount of S$10 million raised from the Convertible Notes “B” issued by Healthway to Gateway, enabling the latter to fulfil its immediate liquidity needs.
In a Monday announcement, HMC says the T1 CN B conversion shares will be issued at a conversion price of 3.384 Singapore cents each.
HMC had previously announced that it will issue the convertible notes to Gateway for an aggregate principal amount of S$70 million, in two tranches. The issue of the second tranche of Convertible Notes "B" comprises a principal amount of S$60 million, which is subject to shareholders' approval.
Gateway’s revised convertible notes deal comes after extensive discussions and amendments to the original proposal, in a bid to win control over the private healthcare group as opposed to Indonesia’s Lippo Group.
Last Thursday, HMC announced it had agreed to enter into Gateway’s revised convertible notes deal instead, rather than Lippo’s proposed S$10 million loan.
In this week’s issue of The Edge Singapore (772, week of March 27), we speak to Anand Kumar, partner at Gateway, where he outlines the firm’s plans for HMC. Get your copy at major bookstores, 7-11 stores, and selected petrol stations today.