SG Med

SG Med: Latest was Jan 14, where it has signed a non-binding MOU with the Ciputra Group to establish the Ciputra SMG Eye Clinic in Ciputra Medical Centre, located in the Ciputra World Jakarta 1 shopping mall. Marking SMG's first overseas foray, the proposed clinic will provide patients in Indonesia with FDA-approved laser vision correction technologies as well as safe and reliable cataract surgery. Yet, uncertainty relating to SMG’s financial position may keep a lid on its expansion drive. The recent change in ownership of the firm and management has triggered a “change of control” event, meaning that SMG may have to redeem its $7.1m worth of convertible preference shares, and appeal to banks over a possible breach of loan covenants. The group has since proposed to raise $7.4m in net proceeds via a 1-for-2 rights issue at $0.105 each, to enhance its financial flexibility. Completion of the fund raising alleviate investor’s concerns regarding SMG’s ability to execute on its growth plans.