KUALA LUMPUR: Pharmaniaga Bhd has completed its 10 per cent first private share placement exercise and a second tranche of 10 per cent is expected to be taken up by Armed Forces Fund Board (LTAT), subject to shareholders' approval.
The company said the first private share placement, announced on July 13 saw the issuance of 131.02 million new ordinary shares to third-party investors.
It said this is aligned with the general mandate granted during Pharmaniaga's 25th annual general meeting held on June 12, authorising the board to issue up to 10 per cent of the company's issued shares.
"The success of the private share placement exercise shows the investors' confidence in Pharmaniaga's growth trajectory and strategic direction, signalling potential enhancement to the company's financial stability.
"These investors that took up the first private placement share were both from institutions and individuals," it said in a statement today.
Meanwhile, Pharmaniaga said LTAT's strategic move will potentially secure up to 10 per cent extra placement shares, with the issue price to be determined at a later date.
It added that this new placement is set to allow the company to raise additional funds, supplementing the proceeds to be received from the first private share placement.
Additionally, Pharmaniaga said these interim measures will also support the company's working capital requirements while a full regularisation plan is being formulated.
"The main objective of this strategic move is to strengthen Pharmaniaga's financial standing, hence enabling the company to reduce debt and improve cashflow," the company noted.