KUALA LUMPUR (Sept 19): Pharmaniaga Bhd (KL:PHARMA) now expects to secure the approval from Bursa Malaysia for its regularisation plan by next month, according to managing director Zulkifli Jafar.
At a press conference following the launch of Pharmaniaga’s new biopharmaceutical plant, Zulkifli said the regularisation plan is crucial to lift the company out of its Practice Note 17 (PN17) status.
Pharmaniaga submitted its regularisation plan, which sought to raise RM654.6 million in equity and reduce accumulated loss by RM180 million via capital reduction, back in February. It had been hopeful of securing the necessary approvals by July.
“We are awaiting Bursa’s approval for the regularisation plan (RP). We expect this to happen either this month, or at the latest, next month,” Zulkifli told reporters on Thursday.
“Once the RP is approved, then we have to complete the whole exercise.... It takes about three to four months.... So we are looking at the whole exercise (to be completed) in February or first quarter of 2025,” he added.
The regularisation plan involves a proposed renounceable rights issue with warrants to raise up to RM354.6 million, and a proposed private placement for potentially another RM300 million.
Pharmaniaga is seeking strategic partners within the pharmaceutical sector, Zulkifli reportedly said in an earlier interview.
The regularisation plan was still pending Bursa's consideration as at Sept 2, according to a filing by Pharmaniaga.
The company slipped into PN17 status in February 2023 amid massive impairment after being unable to sell RM552.3 million worth of Covid-19 vaccines.
At Thursday’s noon break, Pharmaniaga’s shares rose by half a sen, or 1.37%, to 37 sen, giving the company a market capitalisation of RM526.1 million.