LYC has announced the proposed acquisition of a 70% stake in Clinical Nutrition for RM2.24 million to be satisfied entirely via cash.
Clinical Nutrition is mainly involved in the supply of nutraceutical ingredients and owns the 50% shareholding in two proprietary probiotic strains namely Lactobacillus Plantarum DR7 (“DR7”) and Lactobacillus Fermentum DR9 (DR9), of which DR7 has already been successfully commercialised and patented.
It is also involved in formulation and sale of “Sweden Farm Instant Oat Drink” an eight-year-old brand to reduce cholesterol and lower the rise of blood glucose, which are sold in selected pharmacies and online channels in Malaysia.
LYC will streamline the interest in all its nutraceutical companies under LYCN, a wholly-owned subsidiary under LYC Medicare SG.
The addition of Clinical Nutrition will support the growth of LYC’s nutraceutical businesses which is mainly driven by Aqurate, which supplies functional ingredients and provides innovative solutions to the food & beverage, nutraceutical, pharmaceutical and cosmeceutical industry as well as Microbiome., involved in research and development of food and health ingredients, and registration of nutraceutical and pharmaceutical related products with the relevant authorities.
“With rising awareness and consumption of health and wellness supplements, it is timely for us to enhance our market presence in this growing market by developing more products. Clinical Nutrition has two valuable ownership of probiotic strains that have demonstrated to successfully benefit overall health,” Managing Director cum Group Chief Executive Officer of LYC, Mr. David Sui Diong Hoe said.
“Looking ahead, there are ample opportunities for us to monetise these strains by leveraging on Aqurate’s strong sales network and working together with foreign parties for international distribution.”
The Proposed Acquisition is expected to be completed within 3 months.
LYCN will also enter into a put option agreement with the vendors of Clinical Nutrition for the remaining 30% shareholding which shall be exercised from 28 September 2024 and shall expire by 27 September 2027.
