KUALA LUMPUR (July 9): Adventa Bhd has opted to postpone its proposed three-for-five rights issue, which sought to raise RM50.42 million, amid the ongoing legal proceeding between its managing director Low Chin Guan and Top Glove Corp Bhd.

In a statement today, Adventa said Low, who is also a major shareholder in Adventa, told the company he was not in a position to provide an undertaking in relation to the rights issue, due to the legal case.

“In view of the above, the board resolved to defer the proposed rights issue. Adventa will make further announcement in the event there are material developments,” the statement said.

“The board also wishes to clarify that Adventa Berhad and its subsidiaries are not involved in the legal proceedings between Low and other parties,” Adventa added.

Last Friday, Top Glove said it had initiated a suit against Low and Wong Chin Toh to claim for no less than RM714.86 million, after alleging the duo of a conspiracy to fraud the glovemaker into acquiring surgical glovemaker Aspion Sdn Bhd from Adventa Capital Pte Ltd for RM1.37 billion earlier this year.

Low and Wong are both directors at Aspion.

Adventa first proposed the three-for-five rights issue at 55 sen apiece on Jan 17, 2018. The rights issue comes with an attached warrant — exercisable at 65 sen — for every two rights shares subscribed. At the time, Low held a 43.46% stake in the medical services manufacturer.

Adventa had proposed to procure irrevocable undertakings from Low for him to subscribe for his rights entitlement, as well as all remaining rights shares which are not subscribed. Proceeds from the rights issue, which was initially expected to be completed by the second quarter of 2018, was mainly going to be for Adventa's business expansion and working capital. 

Shares of Adventa dipped 4.5 sen or 8.26% to 50 sen at today’s close, giving it a market capitalisation of RM76.34 million.