Medi Lifestyle (SGX:Z4D) reached an agreement with controlling shareholder, Chua Yi Hang, to offset part of a shareholder loan, according to a Thursday filing with the Singapore Exchange.
Shares of the healthcare services provider were down over 8% in Friday trading.
Under the agreement, Hang will subscribe to roughly 47.4 million new rights shares, which will offset SG$947,696 of an outstanding SG$1.5 million shareholder loan.
Additionally, four other corporate insiders have committed to the share offering and have already deposited their subscription amounts into the company bank account, taking the total subscription to 107.1 million shares, amounting to about SG$2.1 million.
Proceeds raised from the activity will be used to offset the loan, while the remaining amount will be used for general working capital needs, debt repayment and business development initiatives.