KUALA LUMPUR (Dec 4): Bioalpha Holdings Bhd said that its wholly-owned subsidiary has been appointed by the Langkawi Development Authority (Lada) to develop and operate a 7.98-acre agro park in Bandar Padang Mat Sirat, Langkawi.

“Bioalpha Wellness Sdn Bhd’s scope is to develop the project and upon completion, will undertake the management and operations of the park,” the integrated health supplement group said in a filing on Monday.

As the owner of the land, Lada — an agency under the Ministry of Finance tasked to propel the tourism economy of Langkawi — is granting Bioalpha Wellness rights of land use for 30 years, said Bioalpha.

Bioalpha Wellness, meanwhile, will provide Lada with a yearly fixed fee and quit rent and assessment. The company will also provide an estimated investment of at least RM15 million to be funded by internally generated funds and bank borrowings.

As of December 2022, Bioalpha’s cash balances stood at RM39.8 million.

Bioalpha said development of the agro park will commence immediately, with the opening targeted in three years.

“Bioalpha plans to develop the park showcasing the integrated facility encompassing the full spectrum of the supply chain, from herbal farming, research and development to product processing.

“One of the park’s attractions will be the herbal garden featuring a smart greenhouse with over 300 high-value crop varieties, where visitors can actively participate in planting and harvesting activities,” the company said in a statement, adding that the park is also capable of catering to international meetings, incentives, conferences, and exhibitions (Mice) events related to herbal farming and agriculture.

Shares in Bioalpha closed half a sen or 5.56% lower to 8.5 sen on Monday, giving the group a market capitalisation of RM119.55 million. Year to date, the counter has declined 22.73%.