KUALA LUMPUR: LYC Healthcare Bhd has proposed to undertake a private placement of up to 10% of the total number of its issued shares to third party investors that would be identified later at an issue price to be determined later, Bernama reported.

       In a filing with Bursa Malaysia, the healthcare service provider said as at April 6, 2022, the total issued share capital of LYC Healthcare was RM58.04mil, comprising 464.53 million shares, and accordingly, a total of up to 46.45 million new shares might be issued pursuant to the proposed private placement.

       “The indicative issue price of the placement shares is assumed at RM0.2217 per placement share, which represents a discount of approximately 9.99% to the five-day volume-weighted average price of LYC Healthcare shares up to and including the latest practicable date of this announcement of RM0.2463 per LYC Healthcare share,” it said.It said based on the indicative issue price of RM0.2217 per placement share, the proposed private placement is expected to raise gross proceeds of up to RM10.3mil.

       The proceeds from the placement are intended to be utilised by LYC Healthcare and its subsidiaries to partly or fully finance business expansion, working capital and expenses in relation to the proposed private placement.“The proceeds will enable LYC Healthcare to retain an adequate cash level and flexibility in respect of financial allocations for our operational requirements,” it said.

       and short term obligations and liabilities, which in turn may enable the group to carry out our day-to-day operations in an efficient and timely manner,” it said.

       It said barring any unforeseen circumstances, it is optimistic that the proposed private placement might augur well for the overall business and financial prospect of the company moving forward.

       It added that the proposed private placement, which is expected to be implemented in the second quarter of 2022, is not expected to have any material impact on LYC Healthcare’s estimated earnings for the full year ending March 31, 2023.

       UOB Kay Hian Securities (M) Sdn Bhd has been appointed as the adviser and placement agent for the proposed private placement. - Bernama