Market debut: (from left) Bursa Malaysia Bhd CEO Datuk Tajuddin Atan, Bioalpha Holdings Bhd MD William Hon, K&N Kenanga Holdings Bhd MD Datuk Chay Wai Leong and Bioalpha chairman Tan Sri Abd Rahman Mamat during the listing of Bioalpha on the Ace Market of Bursa Malaysia in April 2015.
KUALA LUMPUR: Bioalpha Holdings Bhd
has proposed to raise RM28mil from a renounceable rights issue, the bulk of which will be used to finance the launch of new products and expand its herbal park.
The health supplements company said on Wednesday the rights issue would on the basis of one rights share for every five existing shares. The sweteener is one free warrant for every rights share subscribed.
“The exercise entails the issuance of 133.3 million rights shares together with 133.3 million warrants, based on the enlarged issued and paid up share capital of Bioalpha following the completion of the one-for-three bonus issue,” it said.
Bioalpha said the issue price of the rights shares and the exercise price of the warrants shall be determined and announced later.
Of the RM28mil to be raised, it will use RM13.5mil to launch new products; RM3.5mil to buy new machinery to boost its production capability and RM10mil for phase 2 of its herbal park in Pasir Raja, Terengganu comprising 880 acres of land. The remaining RM1mil will be used for working capital.
Bioalpha managing director William Hon said the proceeds from the rights issue with warrants would enable the company to undertake its expansion.
“We plan to launch a number of new products across our key principal markets – Indonesia, China and Malaysia. We have been in Indonesia since 2007 and the market has huge potential.
“We registered RM14.4mil sales with only seven products in FY15. Our growth was hampered by the lengthy registration process for imported products.
“Now that we have our own processing plant in Indonesia, slated to commence by end of September 2016, we can accelerate our new product rollout in Indonesia,” he said.
Hon said Bioalpha plana to introduce 12 new products in the next two years for the Indonesia, which should boost the earnings.
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