THE Minority Shareholders Watch Group is concerned over Bintai Kinden Corp Bhd’s proposed private placement exercise which entails 30% dilution to its existing shareholders’ equity in addition to a substantial discount of up to 20% to be given to third-party investor(s).
Moreover, the mechanical and electrical engineering services provider-cum-COVID-19 vaccine distributor, has completed two private placements last year – one on Sept 28, 2020 and the other on Nov 12, 2020.
“Is the proposed private placement a fair fundraising option to the existing shareholders?” asked the shareholder activism group. “Why not the existing shareholders (been) given the opportunity to participate in the company’s fund-raising exercise this round?
Bintai Kinden is expected to address the concern raised by MSWG at its virtual extraordinary general meeting (EGM) scheduled tomorrow (Nov 22) at 10am.
According to the company’s notice of meeting, it plans to issue 190.95 million new redeemable convertible preference shares (RCPS) to OUD Asset Management Sdn Bhd at an issue price of 10 sen per RCPS.
Bintai Kinden closed up 0.5 sen or 1.39% to 36.5 sen on Friday (Nov 19) with 4.33 million shares traded, thus valuing the company at RM139 mil.
Elsewhere, MSWG is curious over prospects of Yong Tai Bhd’s COVID-19 vaccine venture especially in light of 95% of the country’s adult population having been fully vaccinated.
For the record, the tourism-related property developer is in the midst of its Phase III clinical trial of the inactivated COVID-19 vaccine, KCONVAC, which is developed by its strategic partner Shenzhen Kangtai Biological Products Co Ltd.
“Is there a market for the KCONVAC vaccine?” asked the shareholder activism group. “What are the strategies to ensure that the company is able to sell 10 million doses of KCONVAC vaccine per annum for a period of five years? How much has the group spent in the clinical trial of KCONVAC vaccine?”
Above all else, MSWG is also keen to know the status of the company’s conditional registration approval (CRA) with the National Pharmaceutical Regulatory Agency (NPRA).
“Has the group obtained the approval from NPRA? If not, when does it expect to obtain the approval?” asked MSWG,
Yong Tai is scheduled to stage its fully virtual 27th annual general meeting (AGM) tomorrow (Nov 22) at 10am. – Nov 21, 2021
