EXCEL FORCE MSC BERHAD Annual Report 2018

92 ANNUAL REPORT 2018 14. Assets Held for Sale (cont’d) (a) In the previous financial year, the long term leasehold land and building held under H.S.(D) 159654 Master Lot No. PT 1, Bandar Petaling Jaya, Daerah Petaling, Negeri Selangor (“the Property”) have been classified from property, plant and equipment to assets held for sale as the management were negotiating with Plaza 33 Sdn. Bhd. (“Plaza 33”) for the disposal of the Property. On 29 March 2018, the Company entered into a sale and purchase agreement with Plaza 33 for the disposal of the Property for a total consideration of RM15,665,000. The disposal was completed during the financial year. (b) In the previous financial year, the assets held for sale have been pledged to a licensed bank as security for credit facility granted to the Company as disclosed in Note 17. 15. Share Capital Group and Company Number of Shares Amount 2018 2017 2018 2017 Units Units RM RM Issued and fully paid ordinary shares At 1 January 413,731,950 206,865,975 20,743,365 20,686,597 Shares issued during the financial year 750,000 - 255,000 - Share split - 206,865,975 - - Transition to no-par value regime on 31 January 2017 - Share premium - - - 56,768 At 31 December 414,481,950 413,731,950 20,998,365 20,743,365 In accordance with the transitional provisions set out in Section 618(2) of Companies Act, 2016 (the “Act”), on 31 January 2017, the amounts standing to the credit of the share premium account becomes part of the Company’s share capital. The Company had 24 months from the commencement of the Act, to utilise the amount standing to the credit of its share premium account of RM56,768 for purposes as set out in Sections 618(3) to pay up the unissued shares and for the bonus issue pursuant to Section 618(4) of the Act. As at the date of issuance of the financial statements, the Company did not utilise the share premium account. Ordinary shares During the financial year, the Company issued 750,000 new ordinary shares for a total cash consideration of RM255,000 arising from the exercise of warrants at an exercise price of RM0.34 per ordinary share. The new ordinary shares issued during the financial year rank pari passu in all respects with the existing ordinary shares of the Company. 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. Notes To The Financial Statements 31 December 2018 (cont’d)