KUALA LUMPUR (April 18): Genomics and biopharmaceutical company Malaysian Genomics Resource Centre Bhd (MGRC) has proposed a private placement to raise up to RM3.85 million to be used for future viable investment and working capital.

The ACE Market-listed MGRC previously undertook a private placement in 2021 to raise RM24.2 million, and then another in 2022, which saw it raise RM4.03 million.

In a bourse filing on Tuesday (April 18), MGRC said the proposed private placement entails the issuance of up to seven million new shares, representing 5.38% of total issued shares, to third-party investors at an issue price to be determined later. The group’s issued share capital was RM56.72 million, comprising 130.21 million shares as of April 3.

According to MGRC, the placement shares will be issued based on a discount of not more than 10% to the five-day volume-weighted average market price (VWAP) of MGRC shares up to and including the last trading day immediately preceding the price-fixing date, to be determined by its board of directors after taking into consideration the prevailing market conditions. “As the proposed private placement may be implemented in several tranches within six months, there could potentially be several price-fixing dates and issue prices.”

Based on an illustrative issue price of 55 sen per placement share, which represents a discount of 7.38% to the five-day VWAP of MGRC shares up to April 3 of 59.38 sen, the proposed exercise will raise RM3.85 million.

Barring any unforeseen circumstances, the proposed private placement is expected to be completed by the fourth quarter of 2023. TA Securities Holdings Bhd has been appointed as the principal adviser and placement agent.

MGRC shares closed up 0.5 sen or 0.88% at 57 sen on Tuesday (April 18), giving the group a market capitalisation of RM74.87 million. Its share price had fallen 25.97% year to date.