KUALA LUMPUR (June 13): Key Alliance Group Bhd has applied to subscribe for up to 130 million rights shares and excess rights shares in Komarkcorp Bhd,  at eight sen per share or a total sum of up RM10.4 million.

The 130 million rights shares sought would come with 43.33 million free detachable warrants of Komarkcorp, said Key Alliance in a bourse filing.

As of Tuesday (June 13), Key Alliance holds 101.72 million shares or a 17.62% stake in Komarkcorp.

Komarkcorp has commenced the business of manufacturing and sale of face masks via its subsidiary Komark Mask (M) Sdn Bhd. The group reported a loss after taxation of RM10.19 million and net assets of RM101.42 million as at end-March.

“The board believes, in line with the group’s continuing focus to penetrate the medical devices trading business, its investment into Komarkcorp as a manufacturer of sterile surgical masks, is viable,” said Key Alliance.

It added that Komarkcorp now has an additional business unit involving big data and cloud services following its recent memorandum of understanding with Antchain Technology Pte Ltd.

Key Alliance said it is using internally generated funds to fund the rights share application.

At Tuesday’s closing bell, Key Alliance shares were unchanged at half a sen, with a market value of RM18.39 million. Komarkcorp dropped 5.88% to eight sen, giving it a market capitalisation of RM92.38 million.