HC Surgical and Heliconia end S$5m investment agreement

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HC Surgical Specialists on Friday said that it and Vanda 1 Investments, managed by Temasek's Heliconia Capital Management, have entered into an early redemption and termination deed for a S$5 million convertible bond that Vanda had subscribed for to help fund the company's regional business expansion. Read more at The Business Times.

"Notwithstanding the redemption of the convertible bond, the directors are of the opinion that after taking into consideration the group’s present banking facilities, the working capital available to the group is sufficient to meet its present requirements."

The deed is not expected to have any material impact on the group's consolidated earnings per share or net tangible assets per share for the current financial year ending May 31, 2020, it addded. Under the investment agreement, Heliconia was to have invested S$5 million via a three-year 5.5 per cent convertible bond that is convertible at the option of Heliconia into new ordinary shares of HC Surgical at a conversion price of S$0.5361 per conversion share. In addition, Heliconia will receive a three-year option to subscribe for up to S$5 million of new shares of HC Surgical, at an exercise price of S$0.62 per share.

The Catalist-listed firm’s shares was hammered after news that a doctor at its subsidiary had lost a defamation suit over claims that he was colluding with a fellow specialist for sex with patients.

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