Nexgram acquires Arita medical Acrylic firm, enters vaccine bottling business [13 August 2020] Press Release (Amendment)

Amendment.

arita-logo
Arita Plastics Industries

13 August 2020, Kuala Lumpur – Medical device provider Nexgram Holdings Bhd (Nexgram Group) is acquiring medical plastic firm Arita Plastics Industries (M) Sdn Bhd (Arita) in a move to enter manufacturing and supply of biomedical materials, life-saving medical devices, medical compounds, and personal protective equipment such as protection face shield, hospital Acrylic (PMMA) Medical Intubation boxes and gloves, and Acrylic sheets as alternative material to borosilicate glass vials for COVID-19 Vaccines.

The company also manufactures high quality optical clear extrusion plastic sheets in a dust-free environment to produce high technology products such as LCD panel, light guide panel, and thermoforming & vacuum forming products for Malaysia, South East Asia, Australia, Japan, China/ Hong Kong, India, Europe and South Africa.

The firm said its unit Nmed Industries Sdn Bhd had inked a share sale agreement with the vendor Dato’ Lim Theng Hooi, Datin Khoo Phaik Ee, and Mr Teoh Ean Kee to acquire combined 60% equity interest stake in Arita for RM30 million.

Nexgram Group executive director Tuan Haji Mazru said as on the rationale for the acquisition is in line with the upsurge in demand of medical personal protection equipment including face shield for hospital and schools, hospital intubation and gloves, as well as upcoming covid-19 vaccine bottling across the globe due to the unprecedented global pandemic event. Covid-19 has created higher safety and hygiene awareness across all industries.

“As a result, the medical plastic industry is expected to undergo a structural step-up in demand with rising awareness on the importance of personal protection, hospital demand, and coming vaccination supplies markets,” it added.

“The acquisition will enable Nexgram Group to leverage on Arita’s existing products and services to further expand its clientele and business, providing a more robust bottom to Nexgram Biomedic, the medical division of the group,” he said.

“Vaccine bottles using Arita Covid-19 vaccine plastic sheet came with Tracvirus vaccine record tracking App, a global unified electronic certification (E-Cert) for International travel, social, work and school Covid-19 test and vaccine record anti-fraud and anti-fake verification solution,” the firm added.

On 19 May 2020, Barron’s estimated global Covid-19 vaccine market could reach US$30 billion. According to Prophecy Market Insights, the global Covid-19 vaccines market accounted for US$ 2.6 billion in 2020 and is estimated to be US$ 1.5 billion by 2025 and is anticipated to register a CAGR of -10.4%. The global drugs market related to Covid-19 accounted for US$ 156.0 billion in 2020 and is estimated to be US$ 2.3 billion by 2025 and is anticipated to register a CAGR of -57.0%

Nexgram said the acquisition is expected to be completed in October 2020.

About Nexgram Holdings Bhd

NEXGRAM HOLDINGS BERHAD is listed on the ACE Market of Bursa Malaysia Exchange and its headquarter is in Malaysia. The group is a diversified investment company having businesses in IT, security and surveillance, logistics, medical, property and other industries.

About Nexgram Biomedic Sdn Bhd

NEXGRAM BIOMEDIC GROUP is a global bio pharmaceutical company dedicate to develop new medical devices, drugs, and technologies in support of innovations in the medical field. The group subsidiaries include Medical Brands and Tri-G Technologies which distribute medical devices, Vaccines Lab which conduct clinical trial and vaccine distribution, Medic Data Science which develops Covid-19 screening test and vaccine record tracking App using electronic certificates (E-Certs) for real-time record checking in work, school and travel, Nmed Industries which trade, distribute and invest in medical device and personal protection equipment manufacturing, as well as Glove Alliance in medical and disposable nitrile gloves trading, contract manufacturing and distribution. To learn more about us, visit nexgrambiomedic.com

About Arita Plastics Industries (M) Sdn Bhd

ARITA GROUP manufacture and supply biomedical materials, life-saving medical devices, medical compounds, and personal protective equipment such as protection face shield, hospital Acrylic (PMMA) Medical Intubation boxes and gloves, and Acrylic sheets as alternative material to borosilicate glass vials for COVID-19 Vaccines. The company also manufactures high quality optical clear extrusion plastic sheets in a dust-free environment to produce high technology products such as LCD panel, light guide panel, and thermoforming & vacuum forming products for Malaysia, South East Asia, Australia, Japan, China/ Hong Kong, India, Europe and South Africa.

DISCLAIMER

PUBLIC DISCLOSED & FORWARD LOOKING STATEMENTS

The material disclosed was deem important and crucial to disclose immediately, and had been submitted to relevant authorities according to relevant Listing Rules and Regulations. As a matter of governance and duty to shareholders, the Group management does not guarantee authority review, perception, approval or intervention for such disclosure to be published in public listed company disclosure system or format, deem fit to the relevant officers, regulatory bodies, or equivalent.

The statements contained herein may contain certain forward-looking statements relating to the Group that are based on the beliefs of the Group’s management as well as assumptions made by and information currently available to the Group’s management. These forward-looking statements are, by their nature, subject to significant risks and uncertainties. These forward-looking statements include, without limitation, statements relating to the Group’s business prospects, future developments, trends and conditions in the industry and geographical markets in which the Group operates, its strategies, plans, objectives and goals, its ability to control costs, statements relating to prices, volumes, operations, margins, overall market trends, risk management and exchange rates.

When used herein, the words “anticipate”, “believe”, “could”, “estimate”, “expect”, “going forward”, “intend”, “may”, “ought to”, “plan”, “project”, “seek”, “should”, “will”, “would” and similar expressions, as they relate to the Group or the Group’s management, are intended to identify forward-looking statements. These forward-looking statements reflect the Group’s views at the time such statement were made with respect to future events and are not a guarantee of future performance or developments. You are strongly cautioned that reliance on any forward-looking statements involves known and unknown risks and uncertainties. Actual results and events may differ materially from information contained in the forward-looking statements as a result of a number of factors, including any changes in the laws, rules and regulations relating to any aspects of the Group’s business operations, general economic, market and business conditions, including capital market developments, changes or volatility in interest rates, foreign exchange rates, equity prices or other rates or prices, the actions and developments of the Group’s competitors and the effects of competition in the industry on the demand for, and price of, the Group’s products and services, various business opportunities that the Group may or may not pursue, the Group’s ability to identify, measure, monitor and control risks in the Group’s business, including its ability to manage and adapt its overall risk profile and risk management practices, its ability to properly price its products and services, seasonal fluctuations and factors beyond the Group’s control. Subject to the requirements of the Listing Rules, the Group does not intend to update or otherwise revise such forward-looking statements, whether as a result of new information, future events or otherwise. As a result of these and other risks, uncertainties and assumptions, forward-looking events and circumstances discussed herein might not occur in the way the Group expects, or at all. Accordingly, you should not place reliance on any forward-looking information or statements. All forward-looking statements herein are qualified by reference to the cautionary statements set forth in this section.