Pacific Healthcare Holdings says it has entered into a share subscription agreement  with Affluent Healthcare Holdings, an investment holding company, with interests in several commercial businesses, including the healthcare sector.

Under the deal, Affluent Healthcare will subscribe to 61,951,563 new Pacific Healthcare shares, representing 14.9% of the share capital of the company on an enlarged basis, at at an issue price of $0.11 each.

Pacific Healthcare says the net proceeds of $6.65 million will be used to fund the future expansion of the company. The subscription will also strengthen the equity base of the company and also reduce its gearing.

DMG & Partners Securities acted as the financial advisor in the subscription deal.