KUALA LUMPUR (Nov 18): MMAG Holdings Bhd (KL:MMAG) has been granted a waiver by Bursa Securities from being classified as an affected listed company under Guidance Note 3 (GN3).

The approval of the waiver from the GN3 classification — typically assigned to financially distressed ACE Market-listed companies — was given on Nov 15, said MMAG.

“Further to the approval, the company will continue to take necessary steps to strengthen the financial position of the group, while ensuring compliance with the ACE Market Listing Requirements of Bursa Securities.

The board remains committed to executing its plans and strategies to enhance the group’s financial standing, maintaining transparency, and fulfilling all regulatory obligations,” MMAG said in its filing.

The company, which is involved in the sales of digital devices and logistic services, fell into GN3 after its shareholders equity fell below 50% of issued share capital in the year ended March 31, 2023 (FY2023).

In response, MMAG said the group has raised funds via rights issue and warrants conversion since the audited financial statement was issued.

The amount raised was RM145.34 million from its six-for-one rights issue at 10 sen per share in January, and RM92.09 million raised from warrant conversion from January to September, at 15 sen apiece.

At end-June, it was in a net-cash position of RM52.6 million, not taking into account lease liabilities of RM52.62 million.

The group plans to undertake a capital reduction exercise to further address its equity level.

Over the past month, MMAG made progress in its aviation-related venture, having secured regulatory approval to undertake ground-handling activities for one year, and to operate aircraft-leasing business in Labuan.

In the 18 months ended September 2024, MMAG posted a net loss of RM95.71 million, on revenue of RM824.44 million, which it attributed to business expansion costs. The July-September quarter booked RM21.04 million in profit, mainly on stronger ringgit and reversal of impairments on recovery of receivables, it said.

MMAG’s share price last traded half a sen or 1.18% higher at 43 sen, giving it a market capitalisation of RM981.59 million.