GIIB Holdings Bhd received shareholders' approval to diversify its business into the manufacture, sale and marketing of gloves through its subsidiary, GIIB Healthcare Products Sdn Bhd and executed rights issues with warrants.
GIIB holds a 51% stake in its subsidiary.
The company said in a statement today that with the approval to diversify into the gloves business, GIIB would install five glove production lines at its existing warehouse house in Nilai, Negeri Sembilan, to optimize the use of its existing floor space for business operations.
“The five production lines are estimated to have an annual production capacity of 1.05 billion pairs of gloves. The production line is interchangeable to produce latex or nitrile gloves.
"The renovation work on the existing warehouse is scheduled to be completed in July 2021 and the first production line is expected to start production in November 2021 with all five production lines fully operational by February 2022," he explained.
GIIB added that to fund this diversification, the company will issue releasable rights of up to 362.9 million new ordinary shares on the basis of one rights share for each GIIb share held, together with up to 362.9 million free warrants on the basis of one warrant for each rights share. subscribed.
“The proposed rights issue with the warrants is expected to collect gross revenue of up to RM65.33 million based on an indicative issue price of RM0.18 per rights share excluding proceeds from the issuance of warrants.
"Eligibility for the issue of rights and free warrants will be determined for the closing date which will be announced later," he said.
