Q & M Dental Group (QC7) said it entered into a non-binding memorandum of understanding on Aug, 14 2026 with Medi Lifestyle (Z4D) to sell 60% of its wholly-owned subsidiary EM2AI Pte. Ltd.

Under the proposed deal, Medi Lifestyle will issue 138.0 million new shares at S$0.049 each to Q & M, valuing the stake at about 6.76 million Singapore dollars.

Completion is subject to conditions including satisfactory due diligence, the absence of any material adverse changes, the signing of a consultancy agreement with Q & M, and Medi Lifestyle raising at least 30 million Singapore dollars within two years to fund EM2AI’s expansion in Singapore and Southeast Asia. Prior to completion, EM2AI’s clinic-management software EM2Clinic will be transferred out of the subsidiary.

The parties aim to set profit targets of at least 1.0 million Singapore dollars for FY2027, 1.5 million Singapore dollars for FY2028 and 2.5 million Singapore dollars for FY2029.

Q & M said the divestment will let it focus on its core dental healthcare operations while retaining a 40% stake in EM2AI and gaining an investment in Medi Lifestyle. The company cautioned that there is no certainty the definitive agreements will be signed or that the transaction will close.