KUALA LUMPUR: Biosis Group Bhd, a Practice Note 17 (PN17) company, will submit its regularisation plan to Bursa Malaysia today, the deadline for the submission, and will not seek another extension, said its managing director Shahfie Ahmad.
“We are moving forward into healthcare and it is still promising,” he told The Edge Financial Daily after the group’s annual general meeting yesterday.
Shahfie had joined the board of Biosis in April last year to lead its reorganisation.
Biosis had announced the proposed regularisation plan on June 6. It has since been granted a three-month extension to submit the plan.
If it fails to meet the deadline, the group risks being suspended or delisted from the exchange.
Earlier at the meeting, the group received shareholders’ nod to pay management fees, including rental, that it owes to Chulia Facilities Management Sdn Bhd (CFMSB) from June 2013 to August this year, which totalled some RM526,000.
Shahfie is the founder and group managing director of CFMSB, which has been appointed to manage Biosis’ operations, but does not own any stake in Biosis.
Biosis has been in the red since 2008 but managed to net a profit of RM354,000 for the first financial quarter ended June 30, 2014 (1QFY15), compared with a net loss of RM3.6 million last year, while posting a higher revenue of RM4.05 million from RM1.6 million previously.
In the group’s latest Bursa filings, Biosis said the proposed regularisation plan is to provide strategic direction to turn around its business losses, improve revenues, develop new products and markets, and to achieve a level of growth that generates acceptable earnings for shareholders.
Besides trimming costs and improving efficiency, it is negotiating with several parties, local and foreign, to secure manufacturing contracts, distribute third-party products, and to possibly joint-venture or collaborate on pharmaceutical and related healthcare products and services, the company added.
In its 1QFY14 results filing with Bursa, auditor Messrs Grant Thornton had cautioned that the group’s ability to continue as a going concern is dependent, “on the timely and successful formulation, approval and implementation of the proposed regularisation plan”.
This article first appeared in The Edge Financial Daily, on September 30, 2014.