Livingstone Healthcare meets NPAT target and issues shares as part payment for differed consideration to vendors
On May 20, Livingstone Health holdings announced the payment $25 million to vendors in the form of new shares and cash after a preset profit target was exceeded. The $25 million payment is the so called deferred consideration which is part of the $72 million consideration for the reverse takeover (RTO) of Livingstone by Citicode.
94% of the deferred consideration or $23.5 million will be satisfied by the allotment and issuance of 117,500,000 Deferred Consideration Shares at $0.20 per share, while the balance 6% of $1.5 million will be paid in cash.
The deferred consideration shares and cash will be paid to vendors Dr. Chua Meng Hui, Sebastian, Dr. Chua Hshan Cher, Dax Ng Yung Sern, ICH Capital Pte Ltd, Dr. Lim Pang Yen, Rachel, Dr. Tan Tze Sheng, Edwin and Dr. Tay Ching Yit, Wilson.
Citicode’s shareholders had approved the reverse takeover of Livingstone on January 22, 2021, and the issuance of shares in payment of the base and deferred considerations. The RTO was completed on February 4, 2021.
A base consideration of $47.0 million comprising cash and shares was settled as part of the RTO on Feb 4, 2021. The deferred consideration was contingent on the 2021 adjusted net profit after tax exceeing $4.8 million. Livingstone Health said it recorded 2021 adjusted NPAT of $5.4 million.
Upon the issuance of the deferred consideration shares, Livingstone Health’s issued share capital base will be enlarged to approximately 436.4 million shares from 318.9 million shares.