Bioalpha rights issue oversubscribed by 22%

Moody's outlook on the Korean banking system has been negative since May 2016.

KUALA LUMPUR: Bioalpha Holdings Bhd’s proposed rights issue of 133.33 million shares, with free warrants attached, was oversubscribed by 22.1%.

In a statement, the ACE Market-listed health supplement company said it would raise gross proceeds of about RM26.7mil.

Managing director William Hon said the proceeds would allow Bioalpha to grow and enhance its presence in Malaysia, Indonesia and China.

“Most of the proceeds will be used to increase our product offerings and we are optimistic that this will serve as a catalyst to further strengthen our growth and contribute significantly to our profitability in the next 18 months,” he said.

Bioalpha said about half of the proceeds would be utilised to launch 27 new products in Malaysia, Indonesia and China in the next 18 months.

“RM8.5mil will be used to expand our agriculture business operations while the rest will be for capital expenditure, working capital and expenses relating to the proposed rights issue.

“The targeted completion date for the proposed exercise is Jan 10, 2017” it added. - Bernama