REG - Amala Foods PLC - Transaction Update

Amala FoodsAnnouncement

10/07/2024 07:00

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RNS Number : 8300V  Amala Foods PLC  10 July 2024

 

Amala Foods Plc

(the "Company")

 

Transaction Update

 

Amala Foods Plc (LON: DISH) is pleased to update the market on the progress of
the Reverse Takeover process ("the Transaction").  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 Company announced previously on 24 April 2024 that its target company is a
newly formed healthcare group, Healthcare Medical Plus Pte Ltd ("Healthcare
Medical Plus"), a holding company domiciled in Singapore (the
"Transaction").  Healthcare Medical Plus now has three subsidiaries in the
Philippines as follows:

·    Dialysis Care Plus Inc (100% owned) - a company that is building
dialysis centres in the Philippines where the market for dialysis services is
growing every year.

·    VidaHealth Inc (70% owned) - 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") (40% owned) - the group
acquired a 40% interest in TopHealth, a diagnostic and medical centre that has
been successfully operating since 2009 since our last announcement.  Annual
revenues having been growing consistently.  Audited financial statements show
revenue for 2023 was over £900,000.   TopHealth is profitable and is
expanding its services and real estate to accommodate additional growth.
Healthcare Medical Plus Pte Ltd has agreed to increase its stake to 50% prior
to the completion of the Transaction.

Healthcare Medical Plus has, to date, been funded by its founders and
associates.

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.

The biographies of key founders of Healthcare Medical Plus are as follows:

Sean Rodriguez, Chief Executive Officer - Healthcare Medical Plus

Sean was Vice President & Advisor at Hartford HealthCare, a fully
integrated health system, with over 225 locations across the state of
Connecticut. Sean was Chief Experience Officer and Executive Director at
Barnes-Jewish Hospital at Washington University in St Louis. Further, he has
over 20 years of experience in senior executive positions in healthcare in the
USA. Worked for 9 years as Healthcare Administrator, Outpatient Specialty
& Surgery Clinics at Vanderbilt University Medical Centre. Corporate
Advisor and an Officer at Medicare Plus.  Medicare is one of the premiere
healthcare providers in the Philippines.

Tobi Solidum, Director

Tobi founded a global Government Affairs and Strategic Business Development
group with a focus on USA and Philippines. Represented Fresenius Medicare Care
of North America, Liberty Dialysis, University of Pittsburgh Medical Centre
and the National Kidney Foundation of Hawaii. Further, he was an integral part
of growing a dialysis company from 13 to over 200 centres which was later
acquired for US$2.1 billion.  Responsible for working with the US Centres for
Medicare and Medicaid Services' approval of the current organ transplant
program for the State of Hawaii. Developed and managed the National Kidney
Foundation of Hawaii's state-wide COVID-19 testing program focused on
protecting residents and visitors during the outbreak of the global pandemic.

Pliny Arenas - Dialysis Operations

Pliny is Vice President of Operations at US Renal Care since 2016 and is
responsible for overall operations of Pacific Region with a census >2,000
patients in 15 In-Centre Clinics, 9 Home Therapy Programs, 1 International
Transient Program and 4 Acute Programs with gross revenue of >US$100
million annually.  From 2013 to 2016 he was Regional Vice President of
Operations for Diversified Services Inc and was responsible for overall
operations with 23 In-Centre Clinics, 11 Home Therapy Programs and 2 Acute
Services with a census of >2000 patients. From 1998 to 2013 Pliny worked at
Fresenius Medical Care where he has held several positions.

Daniel Obradó Calzado - TopHealth CEO

Daniel is currently serving as the Chief Executive Officer of TopHealth in the
Philippines. Daniel has built a reputation for excellence in business
planning, digital transformation, and corporate finance. His leadership is
characterized by a strategic vision and a hands-on approach to operations and
financial management, having successfully managed and grown businesses across
multiple countries, including Spain, Vietnam, India, and the Philippines.

Daniel's tenure at Keralty (the previous owner of TopHealth) began as a
Business Development Manager, where he was instrumental in expanding the
company's footprint in diverse markets. He then progressed to Corporate
Development, contributing to strategic initiatives in Spain before assuming
the role of Deputy CEO and Chief Operations Officer in the Philippines. His
proven track record in these roles culminated in his appointment as CEO.

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.  Whilst the Directors
are confident that the Transaction will complete in late summer of 2024, 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.

Also, the Company is currently undergoing its 2024 annual audit for the period
ending 31 March 2024 and understand that due to capacity issues this audit is
unlikely to be concluded prior to 31 July 2024 and therefore the Company will
not publish its annual financial report until August 2024. As this is later
than is required by the Disclosure and Transparency Rules this would
ordinarily result in the suspension of the Company's shares.  However, as the
Company's shares are already suspended, and this suspension is not expected to
be lifted until the Transaction completes or is aborted.

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 (mailto:jmk@bluebirdmv.com)

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