Ni Hsin Berhad Annual Report 2018

28. Subsequent events (i) In January 2019, Pentoli S.R.L., a wholly-owned dormant subsidiary of Steels Crafts Europa S.R.L. was dissolved in accordance with the Italian law. (ii) On 12 February 2019, the Board of Directors declared an interim single tier dividend via a share dividend distribution of up to 24,390,168 units of treasury shares on the basis of 1 treasury share for every 12 ordinary shares held in respect of the financial year ending 31 December 2019. On 22 March 2019, a total 24,389,364 treasury shares amounting to RM6,824,000 were distributed as share dividend and credited into the entitled shareholders’ securities accounts mantained with Bursa Malaysia Depository Sdn Bhd. (iii) In February 2019, the Company obtained shareholders’ approval at the Extraordinary General Meeting for the proposed bonus issue of up to 160,757,455 free detachable warrants on the basis of one (1) warrant for every two (2) existing ordinary shares of the Company. The main salient of the Warrant includes the followings: (a) Each Warrant will entitle its registered holder during the exercise period to subscribe for one (1) new ordinary share at the exercise price at any time during the exercise period, subject to any adjustments in accordance with the provisions of the Deed Poll; (b) The tenure of Warrant is for a period of three (3) years and may be exercised at any time on or after issue date. Warrant not exercised during the exercise period shall thereafter lapse and cease to be valid for any purpose; and (c) The new ordinary shares to be issued arising from the exercise of the Warrants shall, upon allotment and issue, rank pari passu in all respects with the existing ordinary share of the Company, save and except that the new ordinary shares will not be entitled to any rights, allotments, dividends and/or other distribution where the entitlement date precedes the relevant date of allotment and issuance of the new ordinary shares arising from the exercise of the Warrants. (d) The exercise price of the warrants shall be determined and announced by the Board of Directors at a later date after taking into consideration, amongst others, the following: (i) the Warrant will be issued at no cost to the entitled shareholders; (ii) trading and liquidity of the Company’s shares; and (iii) the five (5)- day volume weighted average market price of the Company share and the prevailing market conditions. (iv) In March 2019, the Company incorporated a wholly-owned subsidiary, Ni Hsin Marketing (HK) Limited. Its intended to carry out the business of distribution of the Group’s products and trading of general merchandise in Hong Kong, China and the rest of East Asia. Notes to the financial statements (continued) Annual Report 2018 99