KUALA LUMPUR (Dec 16): The shareholders of precision cleaning and surface treatment service provider MClean Technologies Bhd (KL:MCLEAN) have approved the company’s plan to diversify into plastic injection moulding and undertake a private placement.

In a statement, MClean said that shareholders, at an extraordinary general meeting on Monday, approved the acquisition of We Total Engineering Sdn Bhd’s plastic injection moulding business for RM6.04 million. The acquisition, the company said, aligns with its diversification plans and is expected to enhance its service offerings, profitability and market position.

The private placement involves the issuance of up to 49.3 million new shares — representing 25% of MClean’s issued share capital — to raise up to RM12.3 million. The funds raised will support the acquisition of the plastic injection moulding business and be used to meet working capital requirements.

The company’s major shareholder, Accrelist Crowdfunding Pte Ltd, also received approval to subscribe to up to 25 million of the placement shares.

Shareholders also gave the green light for a share capital reduction exercise amounting to RM35 million, which will be used to offset accumulated losses. The move aims to strengthen the company’s balance sheet and improve its financial flexibility, said MClean.

As at end-September, MClean’s equity reserves stood at negative RM14 million, with accumulated losses amounting to RM19.45 million.

“The acquisition of We Total’s plastic injection moulding business and our diversification into this growing sector align with our vision to create sustainable, long-term value for our shareholders,” said MClean executive chairman and executive director Datuk Dr Terence Tea Yeok Kian.

“These initiatives, supported by the private placement and share capital reduction, will strengthen our financial foundation, broaden our service offerings and unlock new growth opportunities in high-demand industries,” he added.

MClean’s share price closed down 1.5 sen or 4.84% to 29.5 sen on Monday, valuing the company at RM61.1 million.