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Singapore Exchange (SGX) is advising shareholders and potential investors to exercise caution when dealing in shares of International Healthway Corporation (IHC).
The share price of IHC has remained steady between $0.29 and $0.32 since April 2015 to the present, including the period in August 2015 when the general market experienced volatility.
SGX’s review of the trades in IHC revealed that a handful of individuals who seem to be connected to each other, were trading IHC shares through various trading accounts among themselves. In total, their trades constituted more than 60% of the total traded volume of IHC shares in April 2015 to the present.
SGX is working with the relevant regulatory agencies on the matter.
IHC announced a proposed acquisition of Healthway Medical Corporation (HMC) on 19 June 2015. The consideration for each HMC Share is S$0.10, to be satisfied by the issuance of new IHC shares at an issue price of S$0.45 each. The acquisition is subject to court and shareholders’ approval. IHC and HMC will each appoint an Independent Financial Advisor to advise their shareholders on:
- whether the transaction is on normal commercial terms
- whether it is not prejudicial to the interest of the respective companies and their independent shareholders.
