EXCEL FORCE MSC BERHAD Annual Report 2019

EXCEL FORCE MSC BERHAD - ANNUAL REPORT 2019 89 notes to the financial statements 31 december 2019 (cont’d) 16. Share Capital (Cont’d) 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 (“Bursa Securities”) 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. During the financial year, a total of 200,896,425 warrants were exercised before the expiry date of the warrants on 17 July 2019 (“Expiry Date”) which resulted in 200,896,425 new ordinary shares being allotted, issued and listed. As at Expiry Date, 4,925,887 unexercised warrants become null, void and ceased to be exercisable and the same amount was removed from the official list of Bursa Securities with effect from 18 July 2019. 17. Reserves Group Company 2019 2018 2019 2018 Note RM RM RM RM Non-distributable Fair value reserve (a) (26,790) - (26,790) - Other reserve (b) (80,745) (80,745) - - Distributable Retained earnings (c) 26,713,868 26,284,429 26,457,315 26,302,567 26,606,333 26,203,684 26,430,525 26,302,567