KUALA LUMPUR (Dec 23):  Brahim’s Holdings Bhd rose as much as 6% this morning after it signed a Heads of Agreement (HoA) with frozen food manufacturer MRI VC Bhd for the latter to acquire a substantial stake in the former.

At 9.19am, Brahim’s was up 3.13% or 1 sen to 33 sen for a market capitalisation of RM77.97 million. The stock had earlier risen to a high of 39 sen.

The HoA details Brahim’s potentially conducting a private placement and a rights issue, both of which MRI VC would take part in. MRI VC is also paying an RM2 million deposit for the Brahim’s shares it plans to buy. In addition, the agreement stipulates that Brahim’s will award monthly contracts with an aggregate value of up to RM500,000 each, over two years to MRI VC, if it takes up the stake.

No details were provided over the size of the stake and how much Brahim’s plans to raise from the exercises.

Brahim’s is also preparing to submit its regularisation plan to Bursa Malaysia by Feb 27, 2020, to leave its PN17 status and said by earliest it would be able to exit PN17 status by 3Q19.