Medi Lifestyle (SGX:Z4D) will raise about SG$8.8 million through the placement of 178.6 million new shares at SG$0.049 each, according to a Tuesday filing.

Shares dropped about 7% in Wednesday's afternoon trade.

The placement shares represent 31.49% of the company's issued share capital before the placement and 23.95% after completion.

Proceeds will be used for business development and expansion, including project financing, strategic investments, mergers and acquisitions and strategic partnerships, to boost working capital, and to repay debt.