G3 Global Berhad, Artificial Intelligence specialist, has cemented its entry into the higher-margin Healthcare business after it received approval from its shareholders today.
The shareholders has granted approval on a cash call to grow the Healthcare and ICT divisions; a higher limit to issue new shares; and the engagement in related party transactions via a virtual Extraordinary General Meeting.
Four resolutions were tabled at the EGM. The first resolution was on the proposed diversification into healthcare-related business, whereas the second resolution was on a proposed private placement of up to 432,849,300 new ordinary shares or 20% of G3’s total issued shares. The new shares will be issued to independent third-party investors to be identified at a later stage, and the funds raised will be used to expand G3’s Healthcare and ICT businesses.
The third resolution was to increase the limit for authority to allot and issue shares from 10% to 20%, while the fourth resolution proposed a new shareholders’ mandate for recurrent RPTs.
All four resolutions received approval by the voting shareholders.
“The strong approval we received from the shareholders today is indicative of their confidence in the management and the strategic business directions of the Group. Moving forward, G3 will expand its footprint in the Healthcare segment by leveraging on the technology from our partners, i.e. SenseTime and Bestinet Group, as we strive to be more than just a test kits supplier. We are also looking at providing tech-driven healthcare support services to local public and private hospitals and this would offer a good recurring income stream for the Group,” Mr. Dirk Quinten, Managing Director G3 Global said.
“With regards to the private placement exercise, we already have a few parties expressing their interest in G3 as a forefront Artificial Intelligence company supporting the healthcare sector. The prospective investors believe in the value proposition that G3 could bring, especially after the acquisition of Bestinet Healthcare Sdn Bhd last year,” he added.
To recap, G3 acquired a 51% equity stake in Bestinet Healthcare on 8 September 2021. The principal activities of Bestinet Healthcare are mainly related to pharmaceuticals and medicines & health products. G3 will leverage on its in-house Artificial Intelligence capabilities to innovate new products and services for the healthcare business.