Singapore Medical Group Limited (Catalist:5OT) announced that it has entered into a convertible loan agreement with returning investor CHA Healthcare Singapore Pte. Ltd pursuant to which it will receive a convertible loan of SGD 10,000,000 on February 20, 2019. The investor currently holds approximately 6.86% stake in the company. The company will repay the loan including the interest in cash in one lump sum, on the date falling one year after the closing. The loan is convertible into 23,640,662 new shares of the company, which represents approximately 4.92% of the existing share capital and approximately 4.69% of the enlarged share capital of the company at a fixed conversion price of SGD 0.423 which represents a 6% discount over the closing price of company’s shares on February 19, 2019. The transaction is subject to certain conditions including, approval from the shareholders of the company, in-principle approval from the Singapore Exchange Securities Trading Limited for the allotment, issuance and listing of the conversion shares and other conditions. In case of default the investor may require that the loan, all unpaid interest or fees and any other sum then payable under the agreement to be immediately due and payable. If the company does not pay, any sum payable under the convertible loan agreement when due, it shall pay default interest at the rate per annum equal to the aggregate of 12% and the cost to the investor of funding. The company estimates SGD 300,000 as the expenses in connection with the transaction. The company shall receive net proceeds of SGD 9,700,000 in the transaction.