DXN scraps plans to develop medicine facility and wellness centre

• In a filing with Bursa Malaysia on Friday, DXN said it has issued a 30-day notice of termination to both MMHO and EW.

KUALA LUMPUR (Jan 31): DXN Holdings Bhd (KL:DXN) said it is terminating its plan to develop a medicine facility and a wellness centre due to a lack of progress and failure to achieve the expected benefits.

The group had signed a memorandum of agreement with Persatuan Holistik dan Herba Malaysia (MMHO) in September 2023 for the establishment of the medicine facility, and a memorandum of understanding with European Wellness Centres Inc (EW) in October 2023 for the development of the wellness centre.

In a filing with Bursa Malaysia on Friday, DXN said it has issued a 30-day notice of termination to both MMHO and EW.

DXN, which sells health and wellness products, said the termination will not have any material financial impact on the group.

LSJ Global Sdn Bhd, the largest shareholder of the group with a 48.16% stake, is controlled by DXN's executive chairman and founder Datuk Lim Siow Jin.

Shares of DXN gained one sen or 1.92% to close at 53 sen on Friday, giving the group a market capitalisation of RM2.59 billion. The stock is trading at a trailing price-earnings ratio of eight times, which is lower than its peer, Amway (M) Holdings Bhd (KL:AMWAY), at nine times.

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