Raffles Education (SGX:NR7) proposed to purchase and cancel SG$35 million worth of convertible bonds from the company's chief executive officer, Chew Hua Seng, and his spouse and associate, Doris Chung Gim Lian, according to a Monday filing with the Singapore Exchange.

As part of the proposal, the education services company will issue SG$35 million of new unlisted non-convertible five-year 5.5% unsecured bonds, along with 538.9 million unlisted detachable warrants, to both individuals.

The warrants will be priced at SG$0.065 per new share.

The proposed offer will allow the company to maintain its cash position.

Shares of the company were down over 2% in Monday trading.