Pharmaniaga: Private placement part of fund-raising exercise, not regularisation plan


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 a 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 interim measures 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.

To recap, on June 13, 2023, the company proposed to undertake a private placement of up to 131.02 million new ordinary shares representing 10 per cent 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 thcorporatee proposed exercise. - Bernama

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In Business News

Architectural history and evolution
The subsale conveyancing grey area
Calculating rates of charges and share units (part 1)
Trump says new tariffs on autos coming around April 2
Ringgit to trade cautiously ahead of FOMC minutes
Oil prices settle lower as supply worries ease
Domestic demand fuels 5% growth in 4Q24
Opening new frontiers for business
Navigating the future of business travel
Sustainability through strong governance and enriching actions

Others Also Read