AsiaMedic has decided to cease the group’s interest in Shanghai Weijian Hospital Investment Management Co. (Shanghai post-natal centre), Shanghai Xin Hua Tang Men Zhen Bu Co. (Shanghai medical centre) and Shanghai Wei Rong Investment Management Co.
As a result of the termination agreement, Shanghai medical centre will have to pay back the RMB1.39 million ($307,000) while Shanghai post-natal centre will be closed.
The completion of the transaction will also result in an impairment loss of $1.6 million to the group.
AsiaMedic is also expected to incur a loss for the financial year ending Dec 31.
In 2012, AsiaMedic entered into convertible loan arrangements with the Shanghai parties, with the intention of converting the convertible loans into equity when the centres become profitable.
However, the centres have been incurring losses since their inception in 2012 and are in a net tangible
liabilities position.
Therefore, AsiaMedic has reviewed its options and decided that it is not in the group’s interest to hold the convertible loans, convert the convertible loans into equity, and to continue to provide funding to the centres in the form of working capital loans.
AsiaMedic last traded at 6 cents.
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As a result of the termination agreement, Shanghai medical centre will have to pay back the RMB1.39 million ($307,000) while Shanghai post-natal centre will be closed.
The completion of the transaction will also result in an impairment loss of $1.6 million to the group.
AsiaMedic is also expected to incur a loss for the financial year ending Dec 31.
In 2012, AsiaMedic entered into convertible loan arrangements with the Shanghai parties, with the intention of converting the convertible loans into equity when the centres become profitable.
However, the centres have been incurring losses since their inception in 2012 and are in a net tangible
liabilities position.
Therefore, AsiaMedic has reviewed its options and decided that it is not in the group’s interest to hold the convertible loans, convert the convertible loans into equity, and to continue to provide funding to the centres in the form of working capital loans.
AsiaMedic last traded at 6 cents.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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