KUALA LUMPUR (Nov 8): Genomics and biopharmaceutical company Malaysian Genomics Resource Centre Bhd (MGRC) was issued an unusual market activity (UMA) query by Bursa Malaysia on Monday as its share price plunged.
MGRC's share price plunged by as much as 56 sen or 28% to RM1.44, before paring some losses to close at RM1.65, still down 35 sen or 17.5% at the time of writing, after 18.08 million shares were exchanged.
At its current share price, MGRC has a market capitalisation of RM205 million.
On Nov 3, the company announced that its largest shareholder I Concept Global Growth Fund had ceased to be its substantial shareholder following the disposal of 4.69 million shares in the company between Nov 1 and Nov 2 via the open market. It previously held, as at July 5, 10.3 million shares representing an 8.69% interest in the company.
And in a filing dated Nov 1, the company, which remains an affected listed corporation under Rule 8.03A of the ACE Market Listing Requirements following its disposal of MPath Group in December 2019 for RM42 million, updated that it had until Dec 23 to submit a plan to Bursa Securities to regularise its condition.
MGRC fell into the red in its financial year ended June 30, 2021 (FY21) with a net loss of RM4.29 million from a net profit of RM17.1 million a year ago, mainly because the previous financial year recorded a profit, net of tax, from discontinued operations of RM23.34 million.
The company registered a loss before tax of RM4.293 million for FY21, down from RM6.443 million in FY20, as it saw higher revenues from the recognition of the progress of genome sequencing and analysis services. Revenue came in at RM1.78 million, up from RM951,000 previously, mainly on the derecognition of the progress of genome sequencing and analysis services.
In its results filing then, MGRC was optimistic about the company's prospects, citing its diversification into biopharmaceutical and healthcare products and services, which it said would add value to its existing capabilities and portfolio of products and services.