In a filing with Bursa Securities today, the Practice Note 17 (PN17) status company said since this avenue is now closed, it would consider including the private placement exercise as part of its regularisation plan.

The plan is expected to be submitted to the regulators by the third quarter of this year as the pharmaceutical group seeks to stabilise its finances and enhance shareholder value.

On July 27, Bursa Securities informed Pharmaniaga it was unable to consider its proposed second private placement of new shares to the Armed Forces Fund Board (LTAT). The regulator instead recommended that the private placement be integrated as part of its regularisation plan.

On Aug 1, Pharmaniaga appealed to Bursa Securities on its decision not to consider the company’s proposed second private placement.

Based on the indicative issue price of 35.6 sen for the 140.45 million shares to be placed out, the second placement was expected to raise proceeds of about RM50 million.

Pharmaniaga had on July 24 raised RM45.86 million via its non-public offering in which it placed out 131.02 million new shares or 10% of its then share base. The proceeds were utilised for the group’s working capital.

The group has borrowings of RM914.61 million, and deposits, cash and bank balances of RM27.77 million as at June 30, 2023.

Its shares closed 1.5 sen or 3.23% higher at 48 sen, giving it a market capitalisation of RM692 million.