Local glove companies are in a race to produce more medical or nitrile gloves to meet global demand and joining the race soon will be Mlabs Systems Bhd (Mlabs).
We just heard from the market that Mlabs is working closely with one company, whom we think might be an existing glove manufacturer to help ramp up glove production in response to the global shortage brought about by the COVID-19.
There are currently 13.1 million confirmed COVID-19 cases worldwide, and the total death count is 572,000 with the majority of the cases in the United States, followed by Brazil, India and Russia.
Malaysia is the world’s largest source of medical gloves, with a market share of about 65 per cent. This year alone local manufacturers are expected to produce 240 billion pieces of gloves because of COVID-19.
There are more orders coming in from the United States and Europe and Malaysian glove manufacturers aren’t able to meet all their demand.
Mlabs entry into this business comes at just the right timing as the COVID-19 crisis is far from over.
We are not sure yet how many pieces of the medical or nitrile gloves Mlabs will make with its new partner or where the factory is located but we will try to dig for more information soon from our reliable sources.
Mlabs has traded actively since June. It had jumped from 2 sen in the past few weeks and is currently doing 4.5 sen to 5 sen. Today the stock had 40 million shares traded.
At 4.5 sen or 5 sen, Mlabs is definitely a cheap stock to invest in and the potential for growth is amazing.
Just look at how all the glove counters have performed. The stocks continue to rise to new levels week after week and soon we can expect the same with Mlabs.
Mlabs has made several announcements this year, and one includes the company signing a collaboration agreement with Ipharmarecare (Malaysia) Sdn Bhd (Ipharmacare). Mlabs has said this deal will provide the company an opportunity to expand its solution into the pharmaceutical industry throughout Southeast Asia, including Malaysia.
Mlabs will provide its video-conferencing products to Ipharmacare to complement the latter’s online pharmaceutical platform. Ipharmacare in turn will promote Mlab products, including video conferencing systems, messaging systems and network solutions, to its platform users and/or independent pharmacies.
The company has also announced a private placement of up to 267.4 million new ordinary shares, representing 30 per cent of the total number of issued shares in the company, to independent third-party investors to be identified later.
In a filing with Bursa, Mlabs said that based on an illustrative issue price of RM0.0243 per placement share, the gross proceeds to be raised from the proposed private placement will be utilised for working capital, among others.
As at March 31, 2020, Mlabs has no borrowings or debt securities in the company.
