Frontken Corporation Berhad 200401012517 (651020-T) • A N N U A L R E P O R T 2 0 2 1 172 Explanatory Note on Special Business: 4. Item 5 of the Agenda Bursa Malaysia Berhad has vide its letter dated 23 December 2021, extended the period up to 31 December 2022 for the increased general mandate of 20% for new issue of securities by way of private placement and general mandate of 50% for new issue of securities by way of rights issue as its efforts in continuing to facilitate a conducive fundraising ecosystem for public listed companies. The proposed Ordinary Resolution 5, if passed, will empower the Directors from the conclusion of this AGM, to allot and issue up to a maximum of 20% of the total number of issued shares of the Company (excluding treasury shares) by way of private placement up to 31 December 2022 and thereafter, to revert to not exceeding 10% of the total number of issued shares of the Company (excluding treasury shares) at the time of issue (other than bonus or rights issue) until the conclusion of the next AGM of the Company without the need to convene a general meeting and for such purposes as they consider would be in the best interest of the Company. This authority, unless revoked or varied at a general meeting, will expire at the conclusion of next AGM of the Company. The Board is of the view that the 20% general mandate is in the best interest of the Company and its shareholders as it would provide the flexibility to the Company for any possible fundraising activities that the Company may undertake for working capital and/or any acquisition purposes in an expeditious and efficient manner. At this juncture, there is no decision to issue new shares. If there should be a decision to issue any new share after the general mandate is sought, the Company will make an announcement in respect thereof. The proposed Ordinary Resolution 5 is a renewal of the general mandate for issuance of shares pursuant to Sections 75 and 76 of the Act. The Company had, at the 17th AGM held on 3 June 2021, obtained its shareholders’ approval for the general mandate for issuance of new shares not exceeding 20% of the total number of issued shares of the Company (excluding treasury shares) at the time of issue until 31 December 2021 and thereafter, to revert to not exceeding 10% of the total number of issued shares of the Company (excluding treasury shares) at the time of issue until the conclusion of the next AGM of the Company pursuant to Sections 75 and 76 of the Act. As at the date of this notice, the Company did not issue any share pursuant to the said mandate. 5. Item 6 of the Agenda The proposed Ordinary Resolution 6, if passed, will give the Directors of the Company the authority to take all such steps as are necessary or expedient to implement, finalise, complete and/or effect the purchase(s) of Shares by the Company as the Directors may deem fit and expedient in the best interest of the Company. This authority will, unless renewed or revoked or varied by the Company at a general meeting, continue to be in force until the conclusion of the next AGM or any adjournment thereof of the Company or the expiry of the period within which the next AGM of the Company following the 18th AGM is required by the law to be held. Please refer to the Share Buy-Back Statement dated 28 April 2022 which is circulated together with this Notice for more information. NOTICE OF EIGHTEENTH ANNUAL GENERAL MEETING (CONT’D)
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