Bioalpha to raise RM28m from rights issue

PETALING JAYA: Bioalpha Holdings Bhd proposes to raise RM28 million from a renounceable rights issue to fund its expansion plans.
In a filing with the stock exchange, the integrated health supplements company said the exercise entails the issuance of 133.3 million rights shares on the basis of one rights share for every five existing shares held. Every rights share subscribed will also be entitled to one free warrant.
Based on the indicative issue price of 21 sen per rights share, the proposed rights issue with warrants is expected to raise about RM28 million.
Substantial shareholders of Bioalpha, managing director William Hon and Perbadanan Nasional Bhd, have given their undertaking to subscribe in full their respective entitlements under the proposed exercise.
Hon and PNS will also subscribe to all remaining rights shares not subscribed to by other shareholders.