G3 Global secures shareholders’ nod for healthcare business

G3 Global Bhd managing director Dirk Quinten

KUALA LUMPUR: G3 Global Bhd has secured approval from its shareholders to venture into the higher-margin healthcare business, beginning with the sale of Covid-19 test kits.

In a statement, the artificial intelligence (AI) specialist said its shareholders at an EGM also approved a cash call to grow the healthcare and ICT divisions; a higher limit to issue new shares; and the engagement in related party transactions (RPT).

According to G3, four resolutions were tabled at the EGM, all of which received approval from the voting shareholders.

The first resolution was on the proposed diversification into healthcare-related business, whereas the second resolution was on a proposed private placement of up to 432,849,300 new ordinary shares or 20% of G3’s total issued shares.

The new shares will be issued to independent third-party investors to be identified at a later stage, and the funds raised will be used to expand G3’s Healthcare and ICT businesses.

In addition, the third resolution was to increase the limit for authority to allot and issue shares from 10% to 20%, while the fourth resolution proposed a new shareholders’ mandate for recurrent RPTs.

Managing director Dirk Quinten said the strong approval received from the shareholders is indicative of their confidence in the management and the strategic business directions of the company.

"Moving forward, G3 will expand its footprint in the healthcare segment by leveraging on the technology from our partners - Hong Kong-based SenseTime and Bestinet Group, as we strive to be more than just a test kits supplier.

"We are also looking at providing tech-driven healthcare support services to local public and private hospitals, which would offer a good recurring income stream for the company," he said.

Quinten said that the company already has a few parties expressing their interest in the private placement exercise as G3 is a forefront AI company supporting the healthcare sector.

“The prospective investors believe in the value proposition that G3 could bring, especially after the acquisition of Bestinet Healthcare Sdn Bhd last year,” he added.