PETALING JAYA: Goodway Integrated Industries Bhd has proposed to undertake a private placement, a renounceable rights issues and a diversification from its core business to improve its prospects going forward.
In an exchange filing, Goodway said the private placement would entail an issuance of a total of up to 36.47 million new shares at an Indicative price of 16 sen per share, which will result in gross proceeds of up to RM5.83 million.
The rights issue will see up to 237.06 million rights shares issued on the basis of three rights shares for every two existing Goodway shares held, together with up to 158.04 million warrants on the basis of 2 warrants for every 3 rights shares.
The indicative price for the rights issue with warrants is 12 sen each, which is expected to raise gross proceeds of up RM28.45 million.
Goodway also proposed the diversification of its business to include the supply and installation of mechanical and engineering process control and automation systems.
It is currently principally engaged in the provision of manufacturing and distribution of rubber compounds and related products, property development, retreading of tyres for motor vehicles, earthmovers and trading of tyres related products and retailing and wholesale of natural rubber and other related goods.
The group explained that its revenue had been decreasing mainly due to competitive pricing of its products as a result of increasing competition in the industry.
Goodway anticipates the new business may contribute 25% or more of the net profits or net assets of the group moving forward, and has appointed Goodway Rubber Industries Sdn Bhd director Lee Wei Hong to lead the diversification initiative.
Meanwhile, in a separate Bursa filing, Goodway said its wholly owned subsidiaries, GIIB Development Sdn Bhd and Big Wheel Green Tyres Sdn Bhd had entered into a sale and purchase agreement with Tang Ying See to dispose a parcel of industrial land in Tuaran, Sabah for RM13 million cash.
Tang is the founder, CEO and managing director of Luxchem Corporation Bhd.
