KUALA LUMPUR – GIIB Holdings Bhd has received shareholders’ approval on the diversification of its business to include manufacturing, sales and marketing of gloves through its 51%-owned subsidiary GIIB Healthcare Products Sdn Bhd, and undertake a rights issue with warrants.
In a statement today, the group said with the approval to diversify into the gloves business, the group will install five double former glove-dipping production lines at its existing warehouse in Nilai, Negri Sembilan, to optimise the usage of its existing floor space for business operations.
“The five production lines are estimated to have an annual production capacity of 1.05 billion pieces of gloves. The production lines are interchangeable to produce latex or nitrile gloves.
“The conversion of the existing warehouse is expected to be completed by July 2021 and the first production line is expected to commence production in November 2021 with all five production lines to be fully operational by February 2022,” it said.
To fund this diversification, GIIB said it will undertake a renounceable rights issue of up to 362.9 million new ordinary shares on the basis of one rights share for every one existing GIIB share held, together with up to 362.9 million free warrants on the basis of one warrant for every one rights share subscribed.
“This proposed rights issue with warrants is expected to raise gross proceeds of up to RM65.33 million based on the indicative issue price of RM0.18 per rights share excluding proceeds from the exercise of the warrants.
“The entitlement to the rights issue and free warrants will be determined on a book closure date to be announced late,” it added. – Bernama, July 1, 2021
