KUALA LUMPUR, Feb 23 — Pharmaniaga Bhd has submitted its regularisation plan to Bursa Malaysia Securities Bhd (Bursa Securities) as the company bids to exit its Practice Note 17 (PN17) status.

The company said in a statement that the regularisation plan outlines a holistic approach to increase the equity of the group and minimise accumulated losses.

Pharmaniaga plans a fundraising exercise via a renounceable rights issue of new ordinary shares of up to RM354.6 million and a private placement of up to RM300 million. It has also proposed a capital reduction of about RM180 million to reduce its accumulated losses.

“Supporting this strategic initiative, the group’s substantial shareholders, Lembaga Tabung Angkatan Tentera (LTAT) and Boustead Holdings Bhd (BHB) have committed to ensuring their combined entitlement to the rights issue totalling RM190 million will be taken up,” it said.

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Pending approval from Bursa Malaysia, the plan is projected to be fully implemented in the fourth quarter of the fiscal year ending December 31, 2024.

On February 27, 2023, the pharmaceuticals company triggered the PN17 criteria pursuant to its audited consolidated financial statements for the period ended December 31, 2022. — Bernama

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