PETALING JAYA: Pharmaniaga Bhd plans to raise up to RM655mil to bolster its financial position and exit its Practice Note 17 (PN17) status.
The company’s proposed regularisation plan entailed the proposed capital reduction, rights issue with warrants and private placement.
In a filing with Bursa Malaysia, the cash-strapped company has proposed a capital reduction of the issued share capital of the company by the cancellation of RM180mil issued share capital.
The proposed renounceable rights issue is of up to 1.18 billion new ordinary shares in Pharmaniaga on the basis of four rights shares for every five shares held, together with up to 1.18 billion free detachable warrants on the basis of one warrant for every rights share subscribed.
The proposed private placement is of up to 714.3 million new shares representing up to 26.9% of the enlarged issued share capital of Pharmaniaga after the proposed rights issue with warrants.
“The substantial shareholder of Pharmaniaga, Lembaga Tabung Angkatan Tentera has committed to subscribing up to RM190mil for the rights issuance,” the company stated in a statement.
It added the group has decided to take a prudent step to incur total impairment of RM167mil in the third quarter (3Q23) of which RM121mil involved prior year adjustments.
For 3Q23, Pharmaniaga’s net loss widened to RM49.3mil compared with RM13.9mil achieved in the same period last year. Revenue for the quarter was lower at RM885.5mil against RM894.9mil while loss per share stood at 3.67 sen from 1.07 sen previously.