HAVING survived a downslide scare on Nov 8 after its stock nosedived 28% or 56 sen, ACE Market-listed Malaysian Genomics Resource Centre Bhd (MGRC) found itself spared of a limit down ordeal when its stock pared losses to close 18% or 36 sen lower at RM1.64 with 18.3 million shares exchanging hands at the close of trading.
However, there is no second time luck for operator of one of the largest bio-computational centres for genomics in the region when it was handed a limit down on two successive trading sessions – yesterday (Dec 6) and today.
Yesterday, the counter dipped 71 sen or 29.83% to close at RM1.67 (after being traded between RM2.40 and RM1.67) with 17.34 million shares traded.
Reminiscent of the fate befallen ATA IMS Bhd, MGRC was dealt another blow this morning when it plummeted 50 sen or 29.94% to RM1.17 with 6.97 million shares traded, thus valuing the company at RM145 mil.
But unlike the electronic manufacturing service (EMS) provider whose share price took a beating for its alleged indulgence in forced labour practice which culminated in its 80% revenue contributing customer, Dyson Ltd, terminating its contract, the management of MGRC is dumbfounded as to what might have triggered the downslide of its stocks.
In a reply to an unusual market activity (UMA) query by Bursa Malaysia on the sharp fall of its share price, MGRC said its board of directors were not of any reason – whether corporate development, rumour or potential explanation – that might account for the sudden plunge of its share price.
A check on the company’s stock exchange filing revealed that it had on Nov 30 announced the resignation of its chief financial officer (CFO) Cheah Sek Hon, 46, who wished to pursue other career opportunities.
At the same time, MGRC appointed Teoh Ai Ling, 38, who is a fellow member of the Association of Chartered Certified Accountants (ACCA) but without specifying exactly Teoh’s role.
On the same date, MGRC also announced the cessation of office of its nomination and remuneration committee chairman Datuk (Dr) Rafiah Salim, 74, and the appointment of Munirah Abdul Hamid, 71, as a member of its nomination and remuneration committee.
Also stepping down as the company’s nomination and remuneration committee member with effect from Nov 30 was Ahmad Fauzi Ali, 62.
Besides the above changes, MGRC also announced the acquisition of 250,000 shares in the open market by substantial shareholder Pixelvest Sdn Bhd on Dec 1 which brought the latter’s direct shareholding in MGRC to 7.88%.
However, it it is worthwhile mentioning that Pixelvest had itself ceased to be a substantial shareholder of MGRC on Sept 10 following disposal of 1.5 million shares in the open market on Sept 9.
The re-emergence of Pixelvest also followed the ceasing of I Concept Global Growth Fund as a substantial shareholder of MGRC after the latter’s disposal of 4.69 million shares in MGRC between Nov 1 and 2 via the open market.
Elsewhere, MGRC had in a stock exchange filing dated Nov 1 that said it remains an affected listed corporation under Rule 8.03A of the ACE Market Listing Requirements following its disposal of MPath Group in December 2019 for RM42 mil.
“The company has approximately two months until Dec 23 to submit a regularisation plan to the relevant authorities for approval and will make further announcements in relation to any latest development,” MGRC pointed out.
Financial-wise, MGRC fell into the red in its financial year ended June 30, 2021 with a net loss of RM4.29 mil (FY6/2020: net profit of RM17.1 mil) mainly because the recognition of profit from discontinued operations amounted to RM23.34 mil in the previous financial year.
However, the company returned to the black for its 1Q FY6/2022 with a net profit of RM239,000 (1Q FY6/2021: net loss of RM833,000) with a jump in revenue to RM9.32 mil (1Q FY6/2021: RM87,000). – Dec 7, 2021
