KUALA LUMPUR (Sept 2): Investors who were puzzled by the sharp rise in share price of MQ Technology Bhd’s (MQ Tech), a precision mould maker that has been loss making for 10 years, should know the reason now.

MQ Tech announced to the stock exchange that it has entered into a Memorandum of Agreement (MOA) to acquire a 70% stake in rubber and plastic medical products manufacturer Kibaru Manufacturing Sdn Bhd.

In a filing with the bourse, MQ Tech said the Pulau Pinang-based Kibaru is also involved in the manufacturing of extrusion tubing plastic injection and assembly of medical devices and parts.

“The MOA allows the parties to negotiate the terms of the definitive agreement, which upon signing of the definitive agreement, will enable MQ Tech to explore a significant acquisition of the rubber and plastic medical manufacturer company,” it said.

Under the MOA, the parties will negotiate to enter into a shares sale agreement within six months from the date of the MOA.

Its board of directors said that the MOA is in the best interest of the group.

The company’s share price was barely 2.5 sen a year, it shot up to 21 sen today giving it a market capitalisation of RM150.47 million. Year to date, the stock has shot up 740%.

Since the COVID-19 outbreak, many companies have announced ventures into personal protective equipment (PPE) and medical equipment.

Earlier today, property developer Iconic Worldwide Bhd announced its proposed investment of RM155.5 million into the manufacturing of PPE including gloves and disposable face masks.