Bioalpha to raise up to RM14.2 mil from private placement

TheEdge Fri, Jun 05, 2020 01:52am - 3 years View Original


KUALA LUMPUR (June 4): Bioalpha Holdings Bhd (Bioalpha) has proposed a private placement exercise to raise up to RM14.2 million for the expansion and improvement in its digitalisation of business.

In a statement today, the integrated health supplement company said this includes investment and expansion of existing and complementary businesses.

The balance of funds raised of RM0.1 million will be allocated for the expenses related to the proposed private placement.

Bioalpha said it intends to issue up to 109.9 million shares, representing up to 10 percent of Bioalpha’s enlarged number of issued shares at an indicative issue price of 12.9 sen per placement share.

Managing director William Hon said the additional capital injection from the proposed exercise fortifies the financial position and provides additional capacity to execute the group’s growth strategies.

"We have always been on the lookout for merger and acquisition (M&A) opportunities which are earnings accretive and complementary to our business.

"Given the current economic environment, this is an opportune time to explore these M&A prospects, driven by the availability of quality targets at a more attractive valuation compared to previously," he said.

Hon said the COVID-19 pandemic has accelerated the adoption of e-commerce worldwide and Bioalpha aims to capture the upward trend of online shopping among consumers to market its range of products.

"Our efforts are focused on strengthening the digitalisation efforts of the Group’s sales channel, in line with our intent to increase our revenue stream from online platforms.

“With the funds raised, we are in an even stronger position to carry out our expansion plans. As at Dec 31, 2019, we are in a net cash position, which allows us to actively seek new investment opportunities with the aim of enhancing the long-term growth," he added.

Barring any unforeseen circumstances, Bioalpha expects the proposed private placement exercise to be completed within six months from the approval date of Bursa Malaysia Securities Bhd and other relevant authorities.

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