Meta Health Limited, incorporated in Singapore and listed on the Catalist Board of the Singapore Exchange (SGX-ST), has announced a renounceable non-underwritten rights issue. The company plans to issue up to 264,078,029 new ordinary shares at an issue price of S\$0.006 per share. This represents a 1-for-4 rights issue, allowing shareholders to subscribe to one new share for every four existing shares held as of the record date.

Key Highlights

• The record date for determining shareholders’ eligibility to participate in the rights issue is set for 17 January 2025, at 5:00 PM Singapore time.
• The shares will trade on a “cum-rights” basis until 15 January 2025, and on an “ex-rights” basis starting 16 January 2025.
• The rights issue is priced at S\$0.006 per share, offering shareholders an opportunity to acquire additional shares potentially at a discount to market value.
• Eligible shareholders include both “Entitled Depositors” (those with shares credited to their CDP accounts) and “Entitled Scripholders” (those holding physical share certificates).
• Foreign shareholders without a Singapore-registered address are excluded from participating in the rights issue, though arrangements may be made to sell their provisional allotments “nil-paid” on the Catalist Board.

Important Information for Shareholders

Shareholders are advised to note the following:

1. Eligibility: Only shareholders with a registered address in Singapore or those who have updated their records with a Singapore address by three market days prior to the record date are eligible to participate. Foreign shareholders are excluded unless they provide a Singapore address within the stipulated timeframe.
2. Application Process: Eligible shareholders can accept their rights in full or in part, trade their “nil-paid” rights, or apply for excess rights shares. Those who purchased shares using Supplementary Retirement Scheme (SRS) funds or Central Provident Fund Investment Scheme (CPFIS) funds must instruct their respective approved banks to handle their applications.
3. Risk of Non-Completion: The rights issue is subject to certain conditions and may not be completed. Shareholders are urged to exercise caution and seek professional advice if unsure of the implications.

Potential Impact on Share Price

The rights issue is priced at S\$0.006 per share, which could be attractive to investors if the market price of Meta Health’s shares remains higher. This pricing strategy may lead to increased demand for the rights shares, potentially influencing the company’s share price in the short term. However, shareholders and potential investors should remain vigilant as the completion of the rights issue is not guaranteed, and any changes in terms or failure to meet conditions could introduce price volatility.

Foreign Shareholders and “Nil-Paid” Arrangements

Foreign shareholders are not eligible for the rights issue. However, the company may, at its discretion, arrange for the provisional allotments of rights shares to be sold “nil-paid” on the Catalist Board. If this occurs, the net proceeds, after deducting expenses, will be handled as described in the Offer Information Statement to be disseminated in due course.

Offer Information Statement and Next Steps

The full details of the rights issue will be disclosed in the Offer Information Statement, which will be electronically disseminated to entitled shareholders. Announcements regarding its lodgement and availability will follow shortly.

Cautionary Statement

Shareholders and potential investors are advised to exercise caution when trading Meta Health shares. The rights issue is subject to conditions and may not proceed as planned. It is crucial to review all related announcements and seek professional advice if uncertain about any aspect of the rights issue.