Enviro-Hub Holdings has, on Jan 12, entered into a conditional subscription and loan agreement with Pastel Glove Sdn. Bhd., Law Siau Woei and Choo Kuan Ping, to invest US$5 million ($6.7 million) in Pastel Glove.
The investment will be done by way of a subscription of 500,000 new ordinary shares in Pastel Glove amounting to some US$125,000.
Once the proposed subscription is completed, Enviro-Hub Holdings will grant a loan of about US$4.9 million to Pastel Glove.
Pastel Glove is a company that was incorporated in Sept 28, 2020, with an issued and paid-up share capital of RM1.5 million ($492,660) comprising 1.5 million shares. The company is primarily involved in the manufacturing and trading of rubber gloves.
SEE: 'Strong showing' by rubber glove industry in 4Q2020: CGS-CIMB
As at Jan 12, Pastel Glove is in the midst of setting up its production lines, obtaining the requisite licences and has yet to commence operations.
Accordingly, the net tangible asset value of Pastel Glove is approximately RM1.6 million.
As at Jan 12, the shareholders of Pastel Glove are Law Siau Woei and Choo Kuan Ping, who hold 97% and 3% respectively of the entire issued and paid-up share capital in the company.
Following the completion of the proposed subscription, Pastel Glove will become a 25% associated company of Enviro-Hub Holdings.
The agreement is expected to be completed on or before Jan 31.
Shares in Enviro-Hub closed 0.3 cent higher or 3.1% up at 10.1 cents on Jan 12.
