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Flexidynamic Announces Strategic Investment in Gammatech for Gamma Radiation Sterilisation Technology



KUALA LUMPUR, June 13, 2024 - (ACN Newswire) - Flexidynamic Holdings Berhad ("Flexidynamic" or the "Company"), an established solutions provider for the rubber glove manufacturing industry, is pleased to announce that the Company has entered into a binding letter of intent ("LOI") with Gammatech Sdn Bhd ("Gammatech") for the subscription of 51% of the enlarged issued share capital in Gammatech, at a total subscription price of RM1,040,816 or RM1.00 per new ordinary share. Upon the completion of the Subscription, Gammatech will become a 51%-owned subsidiary of Flexidynamic.

Flexidynamic Holdings Berhad
Flexidynamic Holdings Berhad

Gammatech, a private limited company incorporated in Malaysia which intends to undertake the provision of sterilisation services using gamma radiation.

Gamma radiation sterilisation is a highly effective method used to eliminate microorganisms in various products to ensure sterility. This technology involves exposing products to gamma rays, which penetrate deeply and uniformly to destroy bacteria, viruses, fungi, and other pathogens.

It is widely used in the medical and pharmaceutical industries for sterilising medical devices, surgical instruments, and pharmaceutical products. Gamma radiation is also used in the food industry to extend shelf life and ensure food is well-stored as well as in the packaging industry to sterilise materials and containers.

This new offering may serve not just the existing customers in the glove industry, but can also include industries such as pharmaceuticals, food processing, and packaging. By offering gamma radiation sterilisation services, Flexidynamic aims to meet the growing demand for sterile products, leveraging its existing customer base and expanding into these broader markets.

Mr. Tan Kong Leong, Managing Director of Flexidynamic, commented, "This strategic investment in Gammatech marks a significant milestone for Flexidynamic as we venture into the gamma radiation sterilisation sector. We see substantial potential in this field and are confident that this move will complement our existing operations while opening new avenues for growth in the recovering medical glove industry. Our commitment to innovation and expansion continues to drive our business forward, ensuring long-term value for our shareholders."

A Representative from Gammatech added, "We are excited about the partnership with Flexidynamic Holdings Berhad and believe that their expertise and vision will significantly contribute to the successful launch and growth of Gammatech. We look forward to working closely with Flexidynamic to realise the full potential of this new venture."

As at 5:00 P.M., 12 June 2024, the share price of Flexidynamic closed at RM0.21, representing a market capitalisation of RM62.9 million.

Flexidynamic Holdings Berhad: https://flexidynamic.com/ 

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Source: Flexidynamic Holdings Bhd

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