We refer to the announcement dated 11 November 2019 and 4 February 2020 in relation to the Proposed Variation (“Announcements”). Unless otherwise stated, the terms used herein shall have the same meaning as defined in the Announcements.

On behalf of the Board, Kenanga IB wishes to announce that the Company and the Subscriber had on 14 February 2020 entered into a supplemental letter to amend the Supplemental Agreement (“2nd Supplemental Letter”). The amendments made are as follows:

Original term per Supplemental Agreement

 

Revised term per 2nd Supplemental Letter

“Conversion Limit” shall mean an aggregate of 833,333,333 new Shares to be issued pursuant to the conversion of the Notes or such other number of new Shares to be issued which may be approved by Bursa Securities and shareholders of the Company.

 

“Conversion Limit” shall mean an aggregate of 833,333,333 new Shares to be issued pursuant to the conversion of the Notes.

A Noteholder who is and/or maybe in his absolute opinion unable to exercise his right of conversion of existing Notes held and/or prospective Notes to be subscribed under the terms and conditions of Notes by virtue of the Conversion Limit shall be entitled to submit a notice in writing to the Company requesting the Company to, as soon as practicable upon receipt of such notice and at its own cost, use all reasonable endeavours to procure necessary approvals and/or consents of Bursa Securities, shareholders of the Company or any other regulatory authorities to enable the issuance of Shares in excess of the Conversion Limit to such Noteholder upon the exercise of his right of conversion under the terms and conditions of Notes.

 

This clause is removed as per 2nd Supplemental Letter and is replaced with the following clause in substitution thereof:

A Noteholder who is and/or may be in his absolute opinion unable to exercise his rights of conversion of existing Notes held and/or prospective Notes to be subscribed under the terms and conditions of Notes by virtue of the Conversion Limit shall be entitled to submit a notice in writing to the Company informing the Company to purchase the outstanding Notes at 115% of its principal amount (“Conversion Limit Redemption Amount”) (“Condition”). The Company shall within seven (7) Business Days from the receipt of the written notice pursuant to this Condition from the Noteholder, settle and pay in full the Conversion Limit Redemption Amount together with the payment of all outstanding costs, fees and interest payable under the Subscription Agreement to the relevant Noteholder. Should the Company fail to pay and/or settle in full the Conversion Limit Redemption Amount and all other relevant payments as set out in this Condition within the stipulated time period, the Noteholder shall be entitled to treat the failure to pay as an Event of Default under the Subscription Agreement.

Save for the above, all the other terms and conditions of the Subscription Agreement and Supplemental Agreement shall remain in full force and effect.

This announcement is dated 14 February 2020.