KUALA LUMPUR – Pharmaniaga Bhd today explained that the proposed private placement announced last week is part of an interim fund-raising exercise and not part of the proposed regularisation plan to be submitted to Bursa Malaysia Securities.
Pharmaniaga, which was classified as Practice Note 17 (PN17) in February this year, said pending the finalisation and implementation of a proposed regularisation plan, it would continue to source for funds from the capital market as an interim measure to bridge its working capital requirements.
“As announced by the board on May 26, 2023, the regularisation plan will not result in a significant change in the business direction or policy of the company.
“We wish to highlight that based on its existing business operations, Pharmaniaga Group reported revenue of RM880.5 million and profit after tax of RM2.8 million for the first quarter results for the financial period ended March 31, 2023,” the pharmaceutical company said in a filing with Bursa Malaysia.
Pharmaniaga said it was currently formulating a comprehensive regularisation plan.
“The requisite announcement will be made in due course and the proposed regularisation plan is expected to be submitted to Bursa Securities within the timeframe, as stipulated in paragraph 5.2(a) of PN17 of the listing requirements by the third quarter this year,” it added.
On June 13, 2023, the company had proposed to undertake a private placement of up to 131.02 million new ordinary shares representing 10% of its total issued shares to third-party investors to be identified later and at an issue price to be determined.
Based on an indicative issue price of 34 sen per share, it said the proposed private placement was expected to raise gross proceeds of about RM44.55 million, out of which RM44.21 million would be used for payments to the group’s suppliers/trade creditors and RM336,000 to defray estimated expenses for the proposed exercise. – Bernama, June 22, 2023
