SOLUTN (0093) Solution Group announces RM18.7m private placement for vaccine fill and finish facility
KUALA LUMPUR (Nov 5): Solution Group Bhd has announced a private placement exercise to raise up to RM18.67 million, of which RM18.22 million will go towards the establishment of a vaccine fill and finish facility.
In a filing with the bourse, the group said RM10.22 million of the proceeds has been allocated for the set-up of the facility, RM5 million for purchases of machinery and equipment for the fill and finish process, while RM3 million will be used for the purchases of quality assurance and control equipment.
The private placement exercise will entail the issuance of up to 30.85 million placement shares, representing not more than 10% of the group's current share base.
Solution Group, which is principally involved in the design and development of equipment and software, also proposed a diversification of its operations to include pharmaceuticals.
"The proposed diversification provides an opportunity to the group to venture into the pharmaceutical-related business, which is a growing industry with favourable prospects given the continuous escalation of Covid-19 outbreak and high anticipation of Covid-19 vaccine by the general public.
"Further, the proposed diversification will also open up a new avenue for the group to pursue viable and favourable pharmaceutical-related business opportunities as and when they arise," said the group.
Solution Group's wholly-owned subsidiary Solution Biologics Sdn Bhd (SolBio) on Sept 23 entered into an agreement with CanSino Biologics Inc for both parties to collaborate on the manufacturing and commercialisation of the latter's Covid-19 vaccine.
On Oct 30, SolBio received a letter of authorisation from CanSino, extending its scope in the collaboration to include the marketing and distribution of the vaccine in the Philippines, Vietnam, Thailand, Myanmar, Cambodia, Laos and Brunei.
Under the terms of the collaboration, CanSino will be the beneficial owner and developer of the vaccine, while SolBio is tasked with obtaining the necessary regulatory approvals in Malaysia as well as undertaking the fill and finish manufacturing process of the finished vaccine.
"SolBio is currently in the planning stage of setting up the facility and the setting up of the said facility is expected to take four to six months to complete," said Solution Group.
Solution Group's share price rose two sen or 2.72% to 75.5 sen, giving a market capitalisation of RM234.08 million.