LONDON - Amala Foods Plc (LON: DISH) has announced the signing of a Share Purchase Agreement (SPA) with Singapore-based Healthcare Medical (TASE:PMCN) Plus Pte Ltd (HMP), marking a significant step in its reverse takeover process. The agreement, part of a transaction initially disclosed on September 24, 2024, stipulates that HMP's selling shareholders will receive £8 million in share consideration, distributed in two equal tranches.
The second tranche is contingent on HMP achieving an EBITDA of USD 1 million by March 2028. Prior to any associated Placing linked to the transaction, the shell company is expected to be valued at approximately £2.5 million. The company's engagement with the Financial Conduct Authority (FCA) for prospectus approval continues, alongside other aspects of the transaction and development of the target business.
HMP, which has been funded by its founders and associates, operates three subsidiaries in the Philippines, including Dialysis Care Plus Inc, VidaHealth Inc, and TopHealth Medical Clinics Inc. The latter has recently expanded, opening a second location, and has shown consistent revenue growth since 2009, with the latest audited financial statements indicating revenues of about £900,000 for 2023.
The transaction update comes in the context of the Philippine Universal Healthcare Act of 2019, which has broadened insurance coverage for citizens, including increased coverage for dialysis sessions under PhilHealth. Recent legislation has further increased the coverage for dialysis treatments, supporting potential growth in the Philippine healthcare sector.
Amala Foods is working through the final stages of the transaction, including the completion of financial workstreams and compliance with International Financial Reporting Standards. The review of additional audit work by the Reporting Accountant is underway, with the prospectus expected to be completed after the new year. The company also anticipates publishing its Half Yearly Financial Report by the end of the year.
Completion of the transaction remains subject to regulatory approvals, with no guaranteed outcome. However, the directors express confidence in the process and gratitude to shareholders and investors for their patience. They also reaffirm their commitment to not receiving or accruing any remuneration during this period. This update is based on a press release statement from Amala Foods Plc.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.