Datasonic Group Berhad Annual Report 2020

DATASONIC GROUP BERHAD I ANNUAL REPORT 2020 (Registration No. 200801008472 (809759-X)) 92 RESERVES AND PROVISIONS There were no material transfers to or from reserves or provisions during the financial year other than those disclosed in the financial statements. ISSUES OF SHARES AND DEBENTURES During the financial year:- (a) there were no changes in the issued and paid-up share capital of the Company; and (b) there were no issues of debentures by the Company. TREASURY SHARES During the financial year, the Company purchased 28,412,500 of its issued ordinary shares from the open market at an average price of RM0.92 per share. The total consideration paid for the purchase was approximately RM26,134,000 including transaction costs. The shares purchased are being held as treasury shares in accordance with Section 127(6) of the Companies Act 2016 and are presented as a deduction from equity. As at 31 March 2020, the Company held as treasury shares a total of 28,412,500 of its 1,350,000,000 issued and fully paid-up ordinary shares. The treasury shares are held at a carrying amount of approximately RM26,134,000. OPTIONS GRANTED OVER UNISSUED SHARES During the financial year, no options were granted by the Company to any person to take up any unissued shares in the Company. EMPLOYEE SHARE OPTION SCHEME The Employee Share Option Scheme of the Company (“ESOS”) is governed by the ESOS By-Laws and was approved by shareholders on 20 February 2020. The details of the ESOS are disclosed in Note 51(a) to the financial statements. WARRANTS 2018/2023 The Company had on 6 July 2018 issued 675,000,000 free Warrants on the basis of one (1) Warrant for every two (2) existing ordinary shares. The Warrants are constituted by a Deed Poll dated 18 June 2018. The salient terms of the Warrants 2018/2023 are as follows:- (a) Each Warrant entitles the registered holder to subscribe for one (1) new ordinary share in the Company at any time on or before the maturity date, 5 July 2023, falling five (5) years from the date of issue of the Warrants. Unexercised Warrants after the exercise period will thereafter lapse and cease to be valid; (b) The exercise price of the Warrants is fixed at RM1.09 per Warrant; (c) The new ordinary shares to be issued upon the exercise of theWarrants shall rank pari passu in all respects with the existing ordinary shares of the Company; and (d) TheWarrants were listed and quoted on the Main Market of Bursa Malaysia Securities Berhad on 12 July 2018. As at the end of the financial year, 675,000,000 Warrants remained unexercised. Directors’ Report (Cont’d)