KUALA LUMPUR (Dec 27): Software services provider Nova MSC Bhd (KL:NOVAMSC) has decided not to proceed with subscription deals with two Singapore-based investment firms.
The ACE Market-listed company said its 60%-owned unit Dex-Lab Pte Ltd and 42%-owned EyRIS Pte Ltd have pulled out from their share subscription agreements with Jostar Investment VCC and Mark Investment Group VCC (MIG) due to “extended timeframes required to complete internal and regulatory processes”.
“As part of this reassessment, the company is pleased to advise that it is currently in advanced discussions with another investor for an investment in EyRIS,” Nova MSC said in a bouse filing on Friday.
While the identity of the new investor was not disclosed, Nova MSC said the potential partnership would provide the company access to the Chinese market as well as product expansion opportunities.
“The board remains focused on achieving sustainable growth and maximising shareholder value,” it added.
Under the earlier share subscription agreements, Jostar and MIG were to invest RM34.6 million in Dex-Lab Pte Lab for a 12.5% stake each, and another RM46.5 million in EyRIS Pte Ltd for 10% stakes each.
Dex-Lab is a social robotics solutions provider, while EyRIS develops artificial intelligence for automated image analysis for eye diseases, according to their respective websites.
Shares in Nova MSC ended half a sen or 4.76% lower at 10 sen on Friday, valuing the company at RM145.61 million.