KUALA LUMPUR (Aug 4): Clean room solutions provider Supergenics Bhd has proposed to diversify its business to include the provision of administrative healthcare services, the operation of medical laboratories, and the development of regenerative treatment products for medical treatment and wellness.

The LEAP-Market listed company said the proposed diversification is an opportunity for the group to participate in the regenerative treatment market and to diversify its earnings base.

“The board believes that this is an attractive business proposition which will provide the group with a long-term viable business,” it said in a filing to the local bourse on Friday (Aug 4).

The proposed diversification is also to expand Supergenics’ core business, in line with the group’s objective to seek new business opportunities and additional sources of income, thereby reducing its dependency on its core businesses.

Supergenics is also looking to raise up to RM6 million through a private placement of shares to fund the manufacturing of the group's Supergenics Modular Panel (SGMP), to research and develop technologies used in the production of regenerative treatment products, to repay bank borrowings, and for its working capital.

The group said the proposed placement entails the issuance of up to 26 million new shares or 27.96% of its existing issued shares at an issue price to be fixed. Supergenics currently has an issued share capital of RM6.3 million, comprising 93 million shares.

Assuming the placement shares are issued at an indicative issue price of 0.231 sen per share, the proposed placement is expected to raise gross proceeds of RM6 million.

"Subject to all relevant approvals being obtained, the proposals are expected to be completed by the first quarter of 2024," it said.

Supergenics' shares closed unchanged at 22 sen on Friday, giving the group a market capitalisation of RM21 million.