The proposed diversification into healthcare includes the distribution of COVID-19 test kits.
For the proposed private placement, it said 432.85 million shares, representing 20 per cent of total issued shares, will be issued to independent third-party investors to be identified later and at an issue price to be determined later.
"The group has been reporting losses for the past three financial years mainly due to the slower demand for the ICT products and services and therefore, it had taken steps to explore and identify new business opportunities to diversify the revenue stream,” it told Bursa Malaysia.
On Sept 8, the group ventured into the healthcare industry via Bestinet Healthcare Sdn Bhd, a 51 per cent owned subsidiary of G3 Global for the sale of COVID-19 test kits in Malaysia to meet the growing demand.
"At this juncture, the group intends to market and distribute COVID-19 test kits solely in Malaysia with the intended target market consisting of private sector corporations and businesses with a large workforce, private clinics, private laboratories and private hospitals,” it said.
On the proposed private placement, as of Dec 6, the group has an issued share capital of RM81.7 million, comprising 2.16 billion G3 Global shares and 310 million outstanding warrants which are exercisable into 310 million new shares at an exercise price of three sen each.
"The proposed private placement enables the group to raise additional funds without incurring interest costs compared to conventional bank borrowings which may affect its bottom line,” it said.
As for its prospects, the group said it is optimistic the additional revenue stream from the healthcare business would be able to contribute positively to its future earnings while reducing dependency on the group’s existing businesses. - Bernama