MALAYSIAN Genomics Resource Centre Bhd (MGRC) has proposed a private placement to raise up to RM2.52 million and a RM42 million capital reduction as part of efforts to improve its financial position and eliminate accumulated losses.
The capital reduction is aimed at offsetting accumulated losses of RM27.81 million at the company level and RM41.28 million at the group level as of end-December 2024.
Post-adjustment, MGRC expects to report retained earnings of RM13.93 million at the company level and RM455,000 at the group level — enhancing its capacity to declare future dividends.
The proposed private placement involves issuing up to 13.72 million new shares — or 10% of its issued shares — to third-party investors at an indicative price of 18.37 sen per share, a 10% discount to its recent five-day VWAP.
Some RM2.26 million of the proceeds will be allocated for working capital needs, while RM265,000 will be used to cover related expenses.
MGRC targets to complete the placement by the second quarter of 2025 and the capital reduction by 3Q25.
M&A Securities is acting as principal adviser and placement agent. — TMR
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