Aesthetic Medical International Holdings Group Limited Announces USD$15.1 Million Private Placement with Lafang China Co., Ltd

Rhea-AI Summary

Aesthetic Medical International Holdings Group Limited (Nasdaq: AIH) has announced a definitive share subscription agreement with Lafang China Co., Ltd to raise US$15.1 million. The agreement involves selling 5,329,410 ordinary shares at a price of US$8.50 per three shares. The private placement is subject to customary closing conditions and is expected to finalize within four months. Proceeds will be used to support business development and working capital. The shares have not been registered under the Securities Act, limiting their sale without appropriate registration.

Positive

• Raising US$15.1 million through private placement.
• Proceeds aimed at funding business development and working capital.

Negative

• Shares sold are not registered under the Securities Act, limiting future sales.
• Potential dilution of existing shareholder value due to new share issuance.

SHENZHEN, China, May 17, 2021 (GLOBE NEWSWIRE) -- Aesthetic Medical International Holdings Group Limited (the “Company” or Nasdaq: AIH), a leading provider of aesthetic medical services in China, today announced that it has entered into a definitive share subscription agreement with Lafang China Co., Ltd (“Lafang”) to raise US$15.1 million through a private placement sale of 5,329,410 ordinary shares of the Company to Lafang at a sale price of US$8.50 every three ordinary shares (equivalent to US$8.50 per American Depositary Share of the Company). The private placement is subject to customary closing conditions and is expected to close within four months from the execution of the agreement. The Company intends to utilize the proceeds from this private placement to fund its business development and working capital.

The ordinary shares to be sold in the private placement have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state or other applicable jurisdictions’ securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state or other jurisdictions’ securities laws.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy the ordinary shares, nor shall there be any sale of ordinary shares in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

About Aesthetic Medical International Holdings Group Limited

AIH, known as “Peng’ai” in China, is a leading provider of aesthetic medical services in China. AIH operates through treatment centers that spread across major cities in mainland China, and also has presence in Hong Kong and Singapore. Leveraging over 20 years of clinical experience, AIH provides one-stop aesthetic service offerings, including surgical aesthetic treatments, non-surgical aesthetic treatments, general medical services and other aesthetic services. According to a certain third party industry consultant, AIH was the third-largest private aesthetic medical services provider in China in terms of revenue in 2018. For more information regarding the Company, please visit: https://ir.aihgroup.net/.

Safe Harbor Statement

This press release contains “forward-looking statements.” These statements are made under the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to” and similar statements. Statements that are not historical facts, including statements about the Company’s beliefs, plans and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. These risks and uncertainties and others that relate to the Company’s business, financial condition and industry are detailed from time to time in the Company’s SEC filings, and could cause the actual results to differ materially from those contained in any forward-looking statements. These forward-looking statements are made only as of the date indicated, and the Company undertakes no obligation to update or revise the information contained in any forward-looking statements, except as required under applicable law.

Investor Relations Contact

For investor and media inquiries, please contact:

Aesthetic Medical International Holdings Group Limited
Email: ir@pengai.com.cn

DLK Advisory Limited
Tel: +852 2857 7101
Fax: +852 2857 7103

FAQ

What is the share subscription agreement announced by AIH?

AIH announced a definitive share subscription agreement to raise US$15.1 million by selling 5,329,410 ordinary shares to Lafang China Co., Ltd.

How will AIH use the proceeds from the share sale?

The proceeds will be used to fund AIH's business development and working capital.

What is the price per share in AIH's private placement?

The price in AIH's private placement is US$8.50 for every three ordinary shares.

When is the expected closing date for AIH's private placement?

The private placement is expected to close within four months from the execution of the agreement.

Is AIH's share sale registered under the Securities Act?

No, the shares offered in the private placement have not been registered under the Securities Act.