Meta Health Limited, a Singapore-based healthcare company, has announced its intention to undertake a renounceable non-underwritten rights issue to raise approximately S\$1.43 million. The move aims to strengthen the Group’s financial position, enhance working capital flexibility, and facilitate loan repayments, while offering existing shareholders the opportunity to maintain their equity stakes.

Key Details of the Rights Issue

• Issue Price: S\$0.006 per Rights Share, reflecting a 14.29% discount to the volume-weighted average price of S\$0.007 per share on 5 December 2024.
• Allotment Ratio: One (1) Rights Share for every four (4) existing shares held as of the Record Date. Fractional entitlements will be disregarded.
• Total Shares to Be Issued: Up to 264,078,029 new ordinary shares.
• Maximum Subscription Scenario: Estimated net proceeds of S\$1.43 million after deducting S\$0.15 million in expenses.

Purpose of the Rights Issue

The company plans to allocate the net proceeds as follows:

• 55% (S\$0.79 million): Repayment of existing loans.
• 45% (S\$0.64 million): General corporate and working capital purposes, including operating costs and potential strategic investments or acquisitions.

Meta Health’s board believes the rights issue will bolster the Group’s balance sheet, improve cash flow, and position the company to seize business opportunities as they arise.

Shareholder Participation and Eligibility

Shareholders eligible to participate in the rights issue include:

• Entitled Depositors: Shareholders with shares credited to their Central Depository (CDP) accounts as of the Record Date and who have registered Singapore addresses.
• Entitled Scripholders: Shareholders holding physical share certificates, provided their shares are registered with the company’s Share Registrar by the Record Date.

Foreign Shareholders: Shareholders whose registered addresses are outside Singapore will not be eligible to participate. Any “nil-paid” rights may be sold on the SGX-ST, with net proceeds distributed under the company’s discretion.

Eligible shareholders can also apply for excess rights shares to round off odd lots or increase their stake in the company. However, substantial shareholders and directors will be given lower priority in the allocation of excess rights shares.

Non-Underwritten Basis

Notably, the rights issue is being conducted on a non-underwritten basis. The directors have decided to forgo underwriting fees, citing cost savings. The company stated that there is no minimum amount required to be raised for the rights issue to proceed.

Impact on Share Value

While the rights issue offers shareholders a chance to maintain their equity participation, the discounted issue price could temporarily exert downward pressure on Meta Health’s share price. However, the company’s efforts to improve financial stability and fund growth initiatives may enhance long-term shareholder value and market confidence.

Regulatory Approvals and Timeline

The rights issue is contingent on the following conditions:

• Receipt of the listing and quotation notice (LQN) from the Singapore Exchange (SGX-ST).
• Lodgement of the Offer Information Statement with the SGX-ST and Monetary Authority of Singapore (MAS).

The company has not disclosed the Record Date but will make further announcements as developments unfold.

Director and Shareholder Interests

The directors and substantial shareholders of Meta Health have no additional interests in the rights issue beyond their existing shareholdings and directorships. The board has collectively expressed confidence in the exercise and its potential benefits for the company.