PRG Holdings Berhad Annual Report 2017

• PRG HOLDINGS BERHAD 128 18. SHARE CAPITAL AND TREASURY SHARES (CONT’D) (e) With the introduction of the Companies Act 2016 effective 31 January 2017, the concepts of authorised share capital and par value of share capital have been abolished. Consequently, the balance within the share premium account of RM1,404,000 has been transferred to the share capital account pursuant to the transitional provisions set out in Section 618(2) of the Companies Act 2016. Notwithstanding this provision, the Company may utilise its share premium account for purposes stipulated in Section 618(3) of the Companies Act 2016 for a transitional period of 24 months from 31 January 2017. There is no impact on the number of ordinary shares in issue or the relative entitlement of any of the member as a result of this transition. (f) Warrants 2014/2019 (“Warrants”) On 7 July 2014, the Company issued 54,320,100 free detachable Warrants pursuant to the Rights Issue with Warrants Exercise on the basis of one (1) Warrant for every one (1) Rights Share subscribed. The Warrants are constituted by the Deed Poll dated 2 June 2014 (“Deed Poll”). The salient features of the Warrants are as follows: (i) Each Warrant entitles the registered holder, at any time during the Exercise Period, to subscribe for one (1) new ordinary share of the Company at the exercise price; (ii) The exercise price for the Warrants was fixed at RM0.75 per Warrant (adjusted to RM0.375 pursuant to the share split in the financial year ended 31 December 2016); (iii) The issue date of Warrants is 7 July 2014 and are valid for exercise for a period of 5 years from its issue date and will expire on 6 July 2019. Any Warrants not exercised by its expiry date will thereafter lapse and cease to be valid for any purpose; and (iv) The new shares to be issued arising from the exercise of the Warrants will, upon allotment and issuance, rank pari passu in all respects with then existing shares, save and except that the said new shares will not be entitled to any dividends, rights, allotments and/or other distributions that may be declared, made or paid, prior to the date of allotment of the said new shares. The movements in Warrants are as follows: Number of unexercised Warrants At 1 January 2017 100,544,826 Exercised (4,267,800) At 31 December 2017 96,277,026 As at 31 December 2017, unexercised Warrants of the Company are as follows: No. of Warrants Date issued Exercise price over ordinary shares Warrants expiry date 7 July 2014 RM0.375 96,277,026 6 July 2019 N O T E S T O T H E F I N A N C I A L S T A T E M E N T S 3 1 D E C E M B E R 2 0 1 7 ( c o n t ’ d )