True, we have been given enough disclosures to connect the dots.
In October 2016, a subsidiary of Singapore eDevelopment gave AMBS a convertible loan.
In November 2016, Singapore eDevelopment formed a subsidiary - SeD Biomedical.
In December 2016, Singapore eDevelopment announced an internal restructuring and announced that SeD Biomedical and its affiliates were formed to pursue opportunities in the biomedical sector.
SeD Biomedical is owned 80% by Singapore eDevelopment and 20% by GRDGS and Holista CollTech Limited.
In February 2017, AMBS announced that SeD Biomedical was making a $500K bridge loan to AMBS to pay down key expenses, and initiate the process of settling AMBS' outstanding secured debt and convertible preferred equity securities, in addition to AMBS' accounts payable.
AMBS also announced that SeD Biomedical would be investing four assets into AMBS once the toxic debt and preferred securities were paid off. These four assets are owned by GRDGS and Holista CollTech Limited (the 20% holders of SeD Biomedical).
So, this is taking awhile and you may ask - why doesn't Chan Heng Fei just pay off the toxics? He can afford it.
The answer is simple - Singapore eDevelopment is a public company and he needs shareholder approval to do things.
THAT BRINGS US TO THE BIG NEWS RELEASED TODAY.
Singapore eDevelopment has approached several banks and hedge funds in the USA for financing but has so far not been successful in obtaining financing on terms favourable to the Company.
So Chan Heng Fei has proposed capitalizing the USD10.5M loan he gave to Singapore eDevelopment into shares and warrants. The effect of this would be to improve its balance sheet and reduce its gearing ratio.
The improved balance sheet and reduced gearing ratio would help the Company obtain bank financing on terms which are more favourable to the Company.
In addition, if the warrants issued to Chan Heng Fei are exercised, Singapore eDevelopment will raise new equity funds through the proceeds from the Exercise Price for each Exercised Share. Such proceeds shall be used to finance business expansions, acquisitions and investments, and/or the general working capital of the Group, at the discretion of the Company.
Assuming all the 2017 Warrants are exercised into the Exercised Shares, the Company will raise gross proceeds of S$89,485,200.00 (or USD63,115,539.30).
Connecting the dots - he is making it possible for Singapore eDevelopment to borrow money and making it possible for him to inject a lot of equity through warrant exercises.
The date of the meeting where the shareholders of Singapore eDevelopment approve all of this is March 22, 2017.
In October 2016, a subsidiary of Singapore eDevelopment gave AMBS a convertible loan.
In November 2016, Singapore eDevelopment formed a subsidiary - SeD Biomedical.
In December 2016, Singapore eDevelopment announced an internal restructuring and announced that SeD Biomedical and its affiliates were formed to pursue opportunities in the biomedical sector.
SeD Biomedical is owned 80% by Singapore eDevelopment and 20% by GRDGS and Holista CollTech Limited.
In February 2017, AMBS announced that SeD Biomedical was making a $500K bridge loan to AMBS to pay down key expenses, and initiate the process of settling AMBS' outstanding secured debt and convertible preferred equity securities, in addition to AMBS' accounts payable.
AMBS also announced that SeD Biomedical would be investing four assets into AMBS once the toxic debt and preferred securities were paid off. These four assets are owned by GRDGS and Holista CollTech Limited (the 20% holders of SeD Biomedical).
So, this is taking awhile and you may ask - why doesn't Chan Heng Fei just pay off the toxics? He can afford it.
The answer is simple - Singapore eDevelopment is a public company and he needs shareholder approval to do things.
THAT BRINGS US TO THE BIG NEWS RELEASED TODAY.
Singapore eDevelopment has approached several banks and hedge funds in the USA for financing but has so far not been successful in obtaining financing on terms favourable to the Company.
So Chan Heng Fei has proposed capitalizing the USD10.5M loan he gave to Singapore eDevelopment into shares and warrants. The effect of this would be to improve its balance sheet and reduce its gearing ratio.
The improved balance sheet and reduced gearing ratio would help the Company obtain bank financing on terms which are more favourable to the Company.
In addition, if the warrants issued to Chan Heng Fei are exercised, Singapore eDevelopment will raise new equity funds through the proceeds from the Exercise Price for each Exercised Share. Such proceeds shall be used to finance business expansions, acquisitions and investments, and/or the general working capital of the Group, at the discretion of the Company.
Assuming all the 2017 Warrants are exercised into the Exercised Shares, the Company will raise gross proceeds of S$89,485,200.00 (or USD63,115,539.30).
Connecting the dots - he is making it possible for Singapore eDevelopment to borrow money and making it possible for him to inject a lot of equity through warrant exercises.
The date of the meeting where the shareholders of Singapore eDevelopment approve all of this is March 22, 2017.
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