KUALA LUMPUR (Sept 15): Loss-making Brahim's Holdings Bhd has parted ways with its white knight MRI VC Bhd, which inked a heads of agreement (HOA) in December 2019 to help Brahim's with its regularisation plan.

The deal, which required MRI to pay a RM2 million deposit to Brahim's, was called off after taking into consideration current uncertainties surrounding the group's business, global economy and financial markets, the group said in a bourse filing today.

"Further thereto, the company has refunded the deposit received from MRI free from any interest accrued therein, if any. The parties' obligations pursuant to the HOA shall thereafter cease to have any effect and the parties shall have no further claims against the other," it added.

On May 27, 2019, Brahim's announced that it intended to undertake a proposed regularisation plan, including a fundraising exercise, after triggering Bursa Malaysia's Practice Note 17 criteria on Feb 28 the same year.

The group's HOA with MRI was to allow the latter to participate in Brahim's proposed private placement and rights issue. At the same time, Brahim's was required to award MRI monthly contracts worth up to RM500,000 each for a duration of two years.

Formerly known as UZ Catering Bhd, MRI is an investment holding company focusing on enterprise, healthcare, tech start-ups, halal food start-ups, pre-initial public offering and public listed companies, according to its website.

Shares in Brahim's settled two sen or 8.51% lower at 21.5 sen today with 1.33 million units done. This gives the counter a market capitalisation of RM50.8 million.