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FASES DE COLOCACIÓN

In document REVESTIMIENTOS. Manual de - 1 - (página 72-77)

Interior de casa particular REALIZACIÓN:

7.2/ FASES DE COLOCACIÓN

Our strategies and future plans are as follows:

(a) Leverage on our Company as the dominant market leader and an established brand in Singapore and Hong Kong, the existing markets which we currently operate in

Leveraging on our expertise, experience and existing market reputation of being an established brand and an accredited service provider, we intend to continue growing our core business with respect to the provision of Cord Blood Banking Services in Singapore and Hong Kong, which are the existing markets which we currently operate in. Going forward, we intend to develop our position further in Singapore and Hong Kong. To this end, we intend to undertake certain marketing activities which are aimed at promoting awareness towards the benefits of cord blood

banking in the markets of Singapore and Hong Kong. Proceeds raised from this Invitation will not be utilised for the implementation of these marketing activities.

In addition, we would also be able to increase our current capacity as our new proposed headquarters and facility at Yishun, A’Posh Bizhub, with its larger space would accordingly enable us to store up to approximately 650,000 cord blood units and further entrench our market reputation and position.

(b) Capitalise on strategic investment in the PRC for growth in Hong Kong

Our marketing collaboration agreement with China Cord Blood gives us access to PRC expectant mothers in Beijing and the Guangdong and Zhejiang provinces who intend to deliver in Hong Kong. Of particular strategic value is the fact that there are over 140 hospitals in the Guangdong province as at December 2010 coupled with the fact that the Guangdong province is the area where PRC-expectant mothers who intend to deliver in Hong Kong typically move to, prior to, and in preparation for their delivery. Through our marketing collaboration with China Cord Blood, we would be able to educate this market segment about cord blood banking and market our Cord Blood Banking Services to them before they arrive in Hong Kong.

To further this strategy, Cordlife Shanghai began the process of establishing a branch office in Shenzhen, Guangzhou, in January 2012. This branch office will undertake marketing activities in the Guangdong province to promote our Cord Blood Banking Services offered in Hong Kong by educating expectant mothers in the Guangdong province who intend to deliver in Hong Kong about the benefits of cord blood banking, thus increasing their awareness towards such benefits.

(c) Leverage on expanded clinical use to drive perceived utility of cord blood banking

As medical development expands the therapeutic utility of cord blood banking, the perceived value of cord blood banking will be enhanced. We actively keep abreast of research in the area of clinical utility of cord blood and seek to update our customers on these developments on a periodic basis. As a result of this, we have from time to time, been approached by customers whose child may be suffering from diseases and who may require cord blood therapy for their treatment.

In addition, our Company also plays an active role in working closely with physicians with respect to the provision of cord blood units for use during these transplants, should such a need arise from our customers.

(d) Diversify into secondary and complementary services

We were one of the first to introduce an automated processing system in Singapore and Hong Kong. In addition, we entered into, inter alia, the Cordlife Stem Cell Technology Co-operation Agreement, which gave us the rights to use certain technology and expertise with respect to umbilical cord tissue banking, thus allowing us to offer umbilical cord tissue banking services to our customers and pursuant to which we launched the provision of umbilical cord tissue banking service in Hong Kong in March 2011. We are currently exploring the possibility of offering umbilical cord tissue banking services in Singapore and we have began discussions with the MOH in relation to the licensing requirements for the provision of such a service. We currently have no indicative timeline for the implementation of such service, if at all. As such, there is no clarity on whether proceeds to be raised from this Invitation will be utilised towards the purpose of

the funds to be raised from this Invitation are materially disbursed, our Company will make period announcements via SGXNET and provide a status report on the use in our annual reports.

The provision of this additional umbilical cord tissue banking service serves to enhance the suite of services provided by our Group, thereby distinguishing us from our competitors and enabling us to attract more customers.

(e) Growth through accretive acquisitions in selected markets

We are well placed to grow our business organically and are also actively seeking opportunities to broaden our service offering and expand our geographical coverage in Asia through accretive acquisitions in selected markets around the region.

As part of our expansion plans, we entered into a subscription agreement with CS Cell Technologies Pte. Ltd., a wholly-owned subsidiary of CBB (“CSCT”), which holds 85.0% of Cordlife Sciences India Pvt. Ltd. (“Cordlife India”), on 7 March 2012, pursuant to which we will invest S$1.5 million in CSCT, through the subscription of redeemable convertible bonds (the “Bonds”) issued by CSCT. The investment amount of S$1.5 million is intended for the expansion of operations of CSCT and Cordlife India only. This sum will be financed by the internally generated funds of our Company. CSCT is an investment holding company and has no operating businesses.

For more details on the terms of the subscription agreement, please refer to the section titled “Interested Person Transactions — On-going Transactions — (7) Investment in Cordlife India” of this Prospectus.

For so long as the Bonds remain outstanding, our Company shall have the right to appoint one member to the board of directors of CSCT and restrict CSCT from issuing new shares. We were approached by CSCT for an investment opportunity. Our investment via the Bonds was to enable us to follow and track the business development and progress of Cordlife India and give our Company the option to acquire a stake in Cordlife India, should Cordlife India perform successfully.

Currently, our targeted markets for acquisitions include Indonesia, India and the Philippines. In connection with our demerger from CBB, we had entered into the ROFR Agreement pursuant to which we were granted a right of first refusal to acquire CBB’s cord blood banking businesses and operating companies in Indonesia, the Philippines and India, should CBB propose to sell their cord blood banking businesses in these jurisdictions within the respective periods as stipulated in the ROFR Agreement. The Non-Compete Agreement prohibits our Company from undertaking any activities or carrying on any business or trade that competes directly with the business carried on or proposed to be carried on by CBB in Indonesia, India and the Philippines for the respective periods. It also prohibits our Company from acquiring other similar existing businesses in these jurisdictions. However, the Non-Compete Agreement does not prohibit our Company from investing in the existing business carried out by Cordlife India. Furthermore, it is envisaged that once Cordlife India turns profitable, our Company, pursuant to the Right of First Refusal, will have the first opportunity to acquire Cordlife India, should CBB decide to dispose of Cordlife India at that time. The Non-Compete Agreement does not prohibit our Company from acquiring the businesses owned by the subsidiaries of CBB, pursuant to its rights under the ROFR Agreement, since such acquisitions would not be construed as competing with the CBB subsidiaries. Accordingly, our investment in Cordlife India is therefore not inconsistent with the terms of the

Non-Compete Agreement. If we acquire CBB’s businesses and operating companies in Indonesia, India or the Philippines, our Group would be able to expand our operations in these jurisdictions.

In the event that CBB does not propose to sell their cord blood banking operations after the expiration of the respective periods as stipulated in the Non-Compete Agreement, our Group may choose to set up our own operations in those jurisdictions or elsewhere.

For more details, please refer to the section titled “Prospects, Strategies and Future Plans — Strategies and Future Plans” of this Prospectus.

In document REVESTIMIENTOS. Manual de - 1 - (página 72-77)

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