Amala Foods
Plc
(the
"Company")
Transaction
Update
Amala Foods Plc (LON: DISH) is
pleased to update the market further on the progress of the Reverse
Takeover process ("the Transaction") following the previous update
on 10 July 2024. The Company continues to engage with the
Financial Conduct Authority (FCA) in respect of the approval of its
prospectus and all also progress other work streams related to the
Transaction and the development of the target business. The most
recent prospectus draft was submitted on Friday 13 September
2024.
The Company announced previously on
10 July 2024 that its target company is a newly formed healthcare
group, Healthcare Medical Plus Pte Ltd ("HMP"), a holding company
domiciled in Singapore. HMP has three subsidiaries in the
Philippines as follows:
·
Dialysis Care Plus Inc (100% owned by HMP) - a
company that is building dialysis centres in the
Philippines.
·
VidaHealth Inc (70% owned by HMP with the further
30% held by the joint venture party) - a diagnostic and medical
centre that is in the final stages of construction. The group
have an option to build a further 50 centres pursuant to an
existing joint venture arrangement.
·
TopHealth Medical Clinics Inc ("TopHealth") (50%
owned by HMP with further 50% held by management) - the group
initially acquired a 40% interest in TopHealth, a diagnostic and
medical centre that has been successfully operating since
2009. Annual revenues having been growing consistently over
this period. Current audited financial statements show
revenue for 2023 was circa £900,000. TopHealth is profitable and is
expanding its services and real estate to accommodate additional
growth.
HMP has, to date, been funded by its
founders and associates.
TopHealth has recently completed a
second location which will be opening this week.
The Philippines has previously
enacted legislation called The Universal Healthcare Act of
2019. This legislation resulted in the automatic enrolment of
citizens in the Philippine Health Insurance Corporation
("PhilHealth") that entitles all citizens to insurance coverage and
comprehensive outpatient services. The annual coverage of
dialysis services and diagnostics services has been increasing
under PhilHealth so that it now covers dialysis patients for up to
156 dialysis sessions per year. The Company believes that the
coverage provided by PhilHealth will underpin strong growth in the
Philippine healthcare sector over the coming years. On 11
September 2024 the Secretary of the Department of Health and the
chair of PhilHealth announced increasing the coverage of dialysis
treatments by over 50% from P4,000 (USD 72) to P6,350 (USD114) per
treatment.
Transaction Update
Although the Company continues to
progress the Transaction with the FCA it has taken longer than
anticipated to complete the financial workstreams particularly as
the scope of that work has been expanded to include TopHealth
business which has a more developed trading history. PKF
Philippines audited TopHealth business for the 3 most recent
complete years under Philippine Reporting Standards.
Unfortunately, some previously unanticipated topup audit work is
required in respect of these audits to bring them to a level where
they can be reported on in the Company's prospectus. This
topup work is now expected to be completed on or about the end of
October 2024. The Company will update the market on this in
due course.
Whilst the Directors are confident
that the Transaction will complete, it remains subject to
regulatory approval (including the FCA and the Takeover Panel) and
therefore as is normal with these types of transaction there can be
no guarantee as to whether or when the Transaction will
complete. The Directors will provide further updates to the
market in due course.
The Directors would like to thank
its shareholders and its investors for their continued patience as
the Board continue to strive to achieve a successful outcome for
all shareholders and stakeholders. Consistent with the past
few years, the Directors continue to neither receive nor accrue any
remuneration.
Enquiries:
Jonathan Morley-Kirk, Non-Executive
Chairman
jmk@bluebirdmv.com