G Neptune cancels private placement, diversification plans

PETALING JAYA: G Neptune Bhd has aborted plans to diversify into trading and distribution of apparels as well as private placement exercise to fund the diversification plan.
G Neptune said this came after it triggered the criteria pursuant to Guidance Note No 3 (GN3) of the Ace Market Listing Requirements of Bursa Securities. It has been a GN3 company since November 30, 2017.
"The company will not proceed with the proposals and is looking into formulating a plan to regularise its financial condition," it told the stock exchange.
The IT provider had previously proposed to undertake a private placement of up to 86.6 million new shares to raise up to RM3.03 million.
Meanwhile, the proposed diversification was part of the company’s plan to generate new source of revenue and reduce dependency on the existing IT business.