(Singapore, 13th) Local cord blood bank company Cordlife Group Limited announced that it has received a voluntary conditional partial cash offer from Thai-listed stem cell company Medeze Group, which plans to acquire a 10% stake in the group at a price of S$0.25 per share.
Cordlife stated in a pre-market announcement on Tuesday (May 13) that this offer price is at a 61.3% premium over the group’s last trading price on May 9 and is also higher than the volume-weighted average price over the past 12 months. If the transaction is successfully completed, Medeze will hold approximately 10.68% of Cordlife’s direct equity.
Following the announcement, Cordlife requested a trading halt at 8:55 AM. The company's closing price on the previous trading day was S$0.155.
Cordlife mentioned in the statement that Medeze’s move is its first strategic step into the Singapore market, and it plans to explore business cooperation opportunities with Cordlife to create long-term value and achieve mutual benefits. Additionally, this offer provides Cordlife shareholders an opportunity to exit at a price higher than the market value. Since listing, Cordlife’s share price has fallen by nearly 80%.
Cordlife experienced a significant crisis in the 2024 fiscal year. Due to improper handling of cord blood, the company was ordered by the Singapore Ministry of Health to suspend local operations for nearly nine months last year, resulting in a net loss of S$18.7 million, while fiscal year 2023 recorded a net profit of S$3.6 million. Excluding the impact of refunds and client fee waivers, the net loss was S$8.3 million.
Annual revenue also suffered a severe blow, plummeting from S$76.14 million in fiscal year 2023 to S$27.84 million, a decline of 50%. Excluding refund and waiver factors, last year’s revenue was S$38.2 million.
Cordlife also disclosed in the announcement that since receiving the first customer claim letter in May 2023, it has subsequently received more claims, with some even going to small claims court. Additionally, in February this year, the company received a letter from a group of attorneys representing multiple clients, alleging breach of contract, negligence, and misrepresentation, causing economic loss.
Cordlife stated that it is currently evaluating the claims and has sought legal advice, planning to respond to clients at an appropriate time. As the related cases are still under trial, the company is currently unable to determine their financial impact on the 2025 fiscal year.
Cordlife stated in a pre-market announcement on Tuesday (May 13) that this offer price is at a 61.3% premium over the group’s last trading price on May 9 and is also higher than the volume-weighted average price over the past 12 months. If the transaction is successfully completed, Medeze will hold approximately 10.68% of Cordlife’s direct equity.
Following the announcement, Cordlife requested a trading halt at 8:55 AM. The company's closing price on the previous trading day was S$0.155.
Cordlife mentioned in the statement that Medeze’s move is its first strategic step into the Singapore market, and it plans to explore business cooperation opportunities with Cordlife to create long-term value and achieve mutual benefits. Additionally, this offer provides Cordlife shareholders an opportunity to exit at a price higher than the market value. Since listing, Cordlife’s share price has fallen by nearly 80%.
Cordlife experienced a significant crisis in the 2024 fiscal year. Due to improper handling of cord blood, the company was ordered by the Singapore Ministry of Health to suspend local operations for nearly nine months last year, resulting in a net loss of S$18.7 million, while fiscal year 2023 recorded a net profit of S$3.6 million. Excluding the impact of refunds and client fee waivers, the net loss was S$8.3 million.
Annual revenue also suffered a severe blow, plummeting from S$76.14 million in fiscal year 2023 to S$27.84 million, a decline of 50%. Excluding refund and waiver factors, last year’s revenue was S$38.2 million.
Cordlife also disclosed in the announcement that since receiving the first customer claim letter in May 2023, it has subsequently received more claims, with some even going to small claims court. Additionally, in February this year, the company received a letter from a group of attorneys representing multiple clients, alleging breach of contract, negligence, and misrepresentation, causing economic loss.
Cordlife stated that it is currently evaluating the claims and has sought legal advice, planning to respond to clients at an appropriate time. As the related cases are still under trial, the company is currently unable to determine their financial impact on the 2025 fiscal year.