Frontken Corporation Berhad 200401012517 (651020-T) • A N N U A L R E P O R T 2 0 2 1 65 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 (a) During the financial year, the Company increased its issued and fully paid-up number of ordinary shares from 1,053,435,130 to 1,580,152,675 by way of:- (i) Issuance of 526,717,545 bonus shares at no consideration together with 524,137,195 free detachable warrants on the basis of 1 bonus share together with 1 warrant for every 2 existing ordinary shares held on 28 April 2021. (ii) An amount of RM484,307 was utilised out of share capital for corporate exercise expenses. The new ordinary shares issued rank pari passu in all respects with the existing ordinary shares of the Company. (b) There were no issues of debentures by the Company. TREASURY SHARES During the financial year, the Company sold 305,900 of its treasury shares at an average price of RM5.43 per share in the open market and repurchased 1,460,200 of its ordinary shares from the open market at an average price of RM2.82 per share. 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 total equity. As at 31 December 2021, the Company held 9,201,250 treasury shares at a carrying amount of RM4,747,849. The details on the treasury shares are disclosed in Note 22 to the financial statements. OPTIONS GRANTED OVER UNISSUED SHARES No options have been granted by the Company to any parties during the financial year to take up unissued shares of the Company. No shares have been issued during the financial year by virtue of the exercise of any option to take up unissued shares of the Company. As of the end of the financial year, there were no unissued shares of the Company under options. 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. DIRECTORS’ REPORT (CONT’D)
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