Frontken Corporation Berhad 200401012517 (651020-T) • A N N U A L R E P O R T 2 0 2 1 132 NOTES TO THE FINANCIAL STATEMENTS (CONT’D) 23. RESERVES The Group The Company 2021 2020 2021 2020 RM RM RM RM Non-distributable: Foreign currency translation reserve 54,276,576 39,130,404 - - Statutory reserve 24,517,262 17,704,302 - - Distributable: Retained earnings 308,368,319 264,898,143 92,165,151 60,582,527 387,162,157 321,732,849 92,165,151 60,582,527 Foreign currency translation reserve The foreign currency translation reserve arose from the translation of the financial statements of foreign subsidiaries whose functional currencies are different from the Group’s presentation currency. Statutory reserve The statutory reserve is maintained by the Group’s subsidiary in Taiwan in accordance with the regulations in that country. Warrants On 4 May 2021, the Company issued 524,137,195 warrants pursuant to bonus issue of warrants to all the entitled shareholders of the Company on the basis of one (1) warrant for every two (2) existing ordinary shares held in the Company. The warrants are constituted under a Deed Poll dated 14 April 2021 and each warrant entitles the registered holder the right at any time during the exercise period from 4 May 2021 to 3 May 2026 to subscribe in cash for one new ordinary share of the Company at an exercise price of RM4 each. These warrants were listed on the Bursa Malaysia Securities Berhad on 7 May 2021. As at 31 December 2021, the total number of warrants that remain unexercised were 524,137,195 units. Salient features of the Warrants 2021/2026 are as follows:- (i) Each warrant will entitle the registered holder to subscribe for 1 new ordinary share in the Company at an exercise price of RM4 each subject to adjustment in accordance with the conditions stipulated in the Deed Poll. (ii) The warrants may be exercised at any time on or before the maturity date falling five years (2021/2026) from the date of issue of the warrants on 4 May 2021. Warrants not exercised after the exercise period will thereafter lapse and cease to be valid. (iii) The new shares pursuant to the exercise of the warrants shall, upon allotment issue, rank pari passu in all respects with the existing ordinary shares of the Company in issue except that they will not be entitled to any dividend, rights, allotments and/or any other forms of distributions that may be declared, made or paid to shareholders, the entitlement date of which is before the allotment and issuance of the new ordinary shares; and (iv) The persons to whom the warrants have been granted have no rights to participate in any distribution and/ or offer of further securities in the Company until/and unless warrants holders exercise their warrants for new ordinary shares.
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