MClean Technologies Berhad has announced a series of strategic corporate proposals including a 25.0% private placement, acquisition of a plastic injection moulding business, and proposed diversification into the plastic injection moulding business together with a proposed share capital reduction.

The proposed acquisition of plastic injection moulding business from We Total Engineering Sdn. Bhd.'s was secured at Net Book Value of RM6.04 million. MClean Group the move is to enhance its revenue streams, and diversify its service offerings while gaining access to We Total's well-established customer base in key industries such as electrical and electronic, automotive, oil and gas, and medical devices.

The Proposed Acquisition is expected to create synergies with Group's existing surface treatment for E&E products and precision cleaning for hard disk drives businesses.

Datuk Dr. Terence Tea Yeok Kian, Executive Chairman, and Executive Director commented, "The acquisition of the plastic injection moulding business at NBV presents great value for the Group and provides us with an excellent opportunity to expand our product and service offerings and diversify our revenue streams."

As part of the proposed corporate exercises, MClean plans to issue up to 49.3 million new shares via private placement to potential investors, representing 25.0% of its issued share capital. To facilitate the potential support from its major shareholder, Accrelist Crowdfunding Pte. Ltd., the Company is also seeking shareholders' approval to allocate up to 25.0 million of these placement shares to it. The private placement is expected to raise up to RM12.3 million, which will primarily be used to fund the acquisition and support the Company's working capital requirements for the plastic injection moulding business.

The company has also proposed a share capital reduction of RM35.0 million, which will enable it to rationalise its financial positions by eliminating accumulated losses and to appropriately reflect the value of the underlying assets and financial position of the Company and the Group.