REG - Amala Foods PLC - Transaction Update

Amala FoodsAnnouncement

24/09/2024 08:00

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RNS Number : 3967F  Amala Foods PLC  24 September 2024

 

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 (mailto:jmk@bluebirdmv.com)

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