Biolidics is raising $1.5 million by issuing new shares to one Zhu Hua, to help pay an existing debt which is due soon.

 

In an SGX announcement on Oct 3, Biolidics 8YY 0.00% says it is issuing 230.8 million shares to Zhu at 0.65 cents each.

 

Upon completion of the deal, Zhu will own 29.22% of the company, just shy of the 30% trigger mark where mandatory general offers are required.

The price Zhu is paying is at a 50% discount off Biolidic' s closing price of 1.3 cents on Oct 3.

 

According to Biolidics, Zhu is the managing director of Beijing Zhenghe Antai Investment Management, with around two decades of experience in investments.

 

Biolidics says that it owes Clearbridge BSA just over $2.1 million and the money is due by Nov 25.

 

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The money from Zhu will help go towards repaying that debt.

 

In addition, Zhu, according to the company, intends to undertake a " strategic review" of Biolidic' s existing business and recommend new businesses, where appropriate.