KUALA LUMPUR (Nov 18): Glovemaker Careplus Group Bhd (KL:CAREPLS) has decided to call off its proposed rights issue, citing the downtrend in its share price.

Its share price has fallen 69% year to date. The stock closed unchanged at eight sen on Tuesday, valuing the company at RM62 million.

“The board shall continue to review other alternative fundraising methods to satisfy the company’s funding requirements,” Careplus said in a bourse filing.

It said the shelving of the rights issue is not expected to have any material effect on its earnings and net asset.

The three-for-five rights issue, at 12 sen per share, was proposed by the company in April to raise between RM8.02 million and RM55.4 million, to fund phase one of its new energy vehicle manufacturing hub in Chembong, Negeri Sembilan.

According to Careplus, phase one will include assembly lines with the capacity to produce up to 30,000 passenger cars, 10,000 vans or pickups, and 1,000 buses or trucks. The facility will support original equipment manufacturers for both personal and commercial use, such as fleet operators, ride-sharing services and delivery companies.

Last month, Careplus' external auditor, Deloitte Malaysia PLT, issued an unqualified opinion with a material uncertainty related to the company’s ability to continue as a going concern, as disclosed in its audited financial statements

In its report, Deloitte noted that Careplus and its subsidiaries recorded net losses of RM82.47 million for the financial year ended June 30, 2025, while the company itself booked RM54.2 million in losses. The glovemaker registered net operating cash outflows of RM7.27 million at the group level, and RM34.96 million at the company level.

As at end-June, accumulated losses stood at RM16.21 million at the group level and RM21.97 million at the company level.

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