EXCEL FORCE MSC BERHAD Annual Report 2017

88 14. Share Capital (cont’d) The new Companies Act, 2016 (the “Act”), which came into operation on 31 January 2017, abolished the concept of authorised share capital and par value of share capital. Consequently, the amounts standing to the credit of the share premium account become part of the Company’s share capital pursuant to the transitional provisions set out in Section 618(2) of the Act. There is no impact on the numbers of ordinary shares in issues to the relative entitlement of any of the members as a result of this transition. Ordinary share capital During the financial year, the Company undertook a share split involving the subdivision of every 1 existing ordinary share into 2 new ordinary shares which involved issuance of 206,865,975 additional ordinary shares and listing of up to 103,286,156 additional warrants arising from the adjustments to the numbers of outstanding warrants in accordance with the provisions of the Deed Poll for the outstanding warrants. The split shares were listed and quoted on the Main Market of Bursa Malaysia Securities Berhad on 21 June 2017. The holders of ordinary shares are entitled to receive dividends as and when declared by the Company. All ordinary shares carry one vote per share without restrictions and rank equally with regard to the Company’s residual assets. Warrants On 18 July 2014, the Company issued 103,384,031 2014/2019 free Warrants (“the Warrants 2014/2019”) on the basis of one (1) free warrant for every two (2) existing ordinary shares held of RM0.10 each. The Warrants are constituted under a Deed Poll dated 1 July 2014 (“Deed Poll”). The Warrants 2014/2019 were listed on Main Market of Bursa Malaysia Securities Berhad on 24 July 2014. The salient features of the Warrants 2014/2019 are as follows: (i) the Warrants 2014/2019 entitle its registered holders to subscribe for one (1) new ordinary share of the Company of RM0.10 each at the exercise price during the exercise period; (ii) the exercise price of each Warrant has been fixed at RM0.68 per Warrant; (iii) the Warrants 2014/2019 may be exercised at any time during the tenure of the Warrants of five (5) years including and commencing from the issue date of the Warrants dated 18 July 2014 and ending on the expiry date to be dated 17 July 2019 (“exercise period”). Any Warrants which have not been exercised by the expiry of the exercise period will lapse and therefore cease to be valid for any purpose; and (iv) the new shares will, upon allotment and issue, rank pari passu in all respects with the then existing shares save and except that they will not be entitled to any dividends, rights, allotment or other forms of distributions for which the relevant entitlement precedes the date of allotment and issuance of the new shares arising from the exercise of the Warrants. On 2 June 2017, the shareholders of the Company had approved the adjustment to the exercise price and number of outstanding of the Warrants 2014/2019 pursuant to the subdivision of every 1 existing ordinary share in the Company into 2 ordinary shares in the Company (“Share Split”). Additional Warrants of 103,286,156 were listed and quoted on the Main Market of Bursa Securities on 21 June 2017. The existing exercise price has been adjusted to RM0.34 per Warrant. As at 31 December 2017, unexercised warrants of the Company are as follows: Date granted Exercise price No. of warrants over ordinary shares Warrant expiry date 18 July 2014 RM0.34 (2016: RM0.68) 206,572,312 (2016: 103,286,156) 17 July 2019 Notes To The Financial Statements 31 December 2017 (cont’d)