PETALING JAYA, Malaysia, July 8, 2022 - (ACN Newswire) - Malaysian Genomics Resource Centre (Bursa: MGRC, 0155), a leading genomics and biopharmaceutical specialist, announced today that the Group is proposing to undertake a private placement of up to 10% of its total number of issued shares or up to 12.42 million new placement shares at an issue price to be determined for third-party investors that will be identified later.
Shareholders had approved in the AGM convened on 30 November 2021 for the Group to issue and allot new shares at any time and at such price as the Board of Directors deemed fit provided the number of new shares does not exceed 10% of the total number of issued shares.
The new placement shares will rank equally in all respects with existing Malaysian Genomics shares except they will not be entitled to any dividends, rights, allotments and any other forms of distribution should the entitlement date precede the relevant date of allotment and issuance of the new placement shares.
Placement to raise funds
Azri Azerai, Executive Director of Malaysian Genomics, said, "We are proposing the private placement to raise funds mainly for the Group's future investments of which we are still exploring options and a part of the proceeds will be allocated for the purchase of equipment including IT hardware, biological safety cabinet and extraction automation for our existing and future businesses."
"The reopening of the economy presents opportunities in the private healthcare segment and the fresh funds raised will enable us to be able to take advantage of the possibilities. We diversified into the biopharmaceutical business in 2020 and have since been pushing to open channels for our cell therapies and genetic tests through a series of agreements that gives us a wider market reach. We also bought a 51% stake in a kidney dialysis operator, Aquahealth Sdn Bhd, to offer holistic kidney care."
UOB Kay Hian Securities (M) Sdn Bhd is the adviser and placement agent for the proposed private placement.