CLEARBRIDGE Health is considering Biolidics’ proposal to repay its debt, which amounts to some S$2.1 million, by the extended deadline of Dec 23, 2023.

The medical technology (medtech) company on Wednesday (Nov 22) said it is also considering its options regarding Biolidics’ outstanding debt and will provide further updates in due course.

On Tuesday, Catalist-listed medtech company Biolidics proposed issuing 98.5 million new ordinary shares at S$0.0119 apiece to raise S$1.2 million from Zhu Hua, a China citizen who owns 99.9 per cent of China-based investment management company, Zhenghe Antai Investment Management.

These new subscription shares would represent 17.62 per cent of Biolidics’ current issued share capital, and 14.98 per cent of its enlarged based following completion of the transaction.

Biolidics’ announcement comes after its earlier proposal to raise S$1.5 million from Zhu, by issuing 230.8 million new shares at S$0.0065 per share, fell through at its Nov 21 extraordinary general meeting (EGM).

Only 40.88 per cent of total shareholders who voted were in favour of the deal, while the remaining 59.12 per cent of shareholders voted against it.

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At S$0.0065 per new share, the then-proposed subscription price represented a discount of 56.38 per cent to the volume weighted average price (VWAP) of Biolidics for trades done on Oct 12, 2023, being the date of the subscription agreement.

In a Nov 21 filing, Biolidics said it previously intended to fully utilise net proceeds of about S$1.4 million to partially repay its debt to Clearbridge no later than Nov 25.

As approval for the company’s earlier subscription agreement was not obtained at the EGM, Biolidics has written to Clearbridge to request for an extension of time to clear its outstanding debt.

Under Biolidics’ most recent proposed new share issuance, its latest price of $0.0119 apiece represents a discount of about 9.85 per cent discount to its VWAP as at Nov 20, 2023 – the last full market day which its shares were traded before the date of the new subscription agreement.

New shares under its latest proposal will be issued under a general mandate which Biolidics obtained from its shareholders at its Apr 28 annual general meeting this year, and will therefore not require the approval of its shareholders.

Biolidics also said completion of its new proposed subscription will not require consent from Clearbridge for its requested outstanding debt extension.

Following completion of the new proposed subscription, Zhu intends to undertake a strategic review of Biolidics and recommend new businesses to the company’s board where appropriate.

He has also committed to providing financial support to Biolidics through interest-free shareholder’s loans to ensure that Biolidics will continue to operate as a going concern.

Shares of Clearbridge : 1H3 0% last closed on Tuesday at S$0.013, up S$0.001 or 8.3 per cent; while shares of Biolidics : 8YY 0% ended Monday flat at S$0.013. Both companies requested halts the respective mornings after.