PETALING JAYA: LKL International Bhd has proposed to diversify its principal to include the trading of rubber gloves and personal protective equipment (PPE) to expand its revenue stream
The group, which is currently involved in the manufacturing and distribution of medical devices and accessories, has also proposed to undertake a private placement of up to 355.05 million shares, representing up to 30% of its total issued shares, to independent third-party investors to be identified later and at an issue price to be determined later.
Based on an illustrative issue price of 16 sen per placement share, the exercise is expected to raise gross proceeds of RM56.8mil.
In a filing with Bursa Malaysia, LKL said the proceeds from the proposed private placement would be used for the trading of rubber gloves and PPE and the setting up of new storage facilities.
“The proposed diversification would allow the group to capitalise on a booming segment with favourable prospects while making the most out of the opportunities created by the Covid-19 pandemic.
“Moreover, it will provide an additional revenue stream to the group. This represents part of the group’s business plan to strengthen its financial performance, ” it added.