Vizione proposes diversification into glove, healthcare business

PETALING JAYA: Vizione Holdings Bhd has proposed a diversification of its existing business to include the manufacturing and trading of rubber gloves and related healthcare products .

Its glove and healthcare business, which it had entered via the acquisition of a 51% stake in SSN Medical Products Sdn Bhd, may contribute 25% or more to its net profits.

SSN Medical Products has six existing gloves and three existing condoms production lines in its plant in Seri Kembangan, Selangor. These have the production capacity to produce over 500 million of latex and nitrile (both surgical and examination gloves) per annum and 150 million condoms per annum. With the completion of the acquisition, Vizione proceeded to install six new gloves production lines.

The group is required to obtain approval from its shareholders for the proposed diversification in an EGM to be convened later.

Notwithstanding the diversification, the board intends to continue with the group’s existing businesses of construction and property development in the same manner.

Vizione proposed a variation of the utilisation of proceeds raised from its private placement exercise that was completed on June 2, which raised RM44.86 million, 28.34% lower than planned. With this, it has scrapped RM9.68 million allocated to the funding of future property developments and renewable energy projects. It has also lowered the funding allocated to its existing construction project from RM23.86 million to RM17.08 million, to make up the difference.

Vizione also proposed for a renounceable rights share issues with warrants of up to 1.37 billion rights and 684.57 million warrants on the basis of 1-rights for 1-share of the group and 1warrant for every 2-rights subscribed. It expects to raise a minimum of RM10.23 million and RM136.91 million under the maximum scenario.