KUALA LUMPUR (Feb 17): Malaysia-based venture capital firm Proven Venture Capital PLT has emerged as a substantial shareholder in loss-making genomics and biopharmaceutical specialist Malaysian Genomics Resource Centre Bhd (KL:MGRC) with a 7.14% stake, after acquiring 9.8 million shares from the open market.

The transacted price was not disclosed, but the counter closed at 33 sen on the open market on Feb 13, the date the equity interest was acquired, which works out to a total of RM3.23 million for the share purchase.

With this, Proven Venture is now the second largest shareholder in MGRC after corporate finance services firm Rinani Group Bhd, which holds a 10.64% stake as at March 22, 2024. Other substantial shareholders of MGRC include fund management business firm Pixelvest Sdn Bhd, which owns a 6.83% stake, according to MGRC's annual report 2023.

Based on filings, Proven Venture also hold substantial ownership in several listed companies, including a 12.56% stake in Taghill Holdings Bhd (KL:TAGHILL), a 6.08% stake in Iconic Worldwide Bhd (KL:ICONIC) and a 2.61% stake in Yew Lee Pacific Group Bhd (KL:YEWLEE).

In December last year, MGRC scrapped a proposed private placement of 10% of its issued shares to raise RM4.98 million after reassessing the group’s financial position. It said then that its board of directors was reconsidering the group’s fundraising exercises to meet its financial commitments.

MGRC’s financial performance has been volatile in the past five years. The group has been loss-making in four out of five financial years.

In the cumulative nine months ended Sept 30, 2024 (9MFY2024), the group recorded a net loss of RM3.67 million on revenue of RM4.48 million. The financial year end of the group has been changed from June 30, 2023 to Dec 31, 2023. As such, there will be no comparative financial information available for the preceding year’s corresponding periods.

Shares of MGRC closed up 0.5 sen or 1.54% at 33 sen on Monday, valuing the group at RM45.28 million. A total of 402,000 shares changed hands. Its share price has fallen 5.7% year to date.

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