PRG Holdings Berhad Annual Report 2020

40. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR (continued) (vii) On 17 January 2020, the Company announced that PRG Asset Sdn. Bhd. (“PRG Asset”) had on even date issued an Information Memorandum to sophisticated investors within the meaning of Section 230 of the Capital Markets and Services Act 2007 for the proposed issuance of irredeemable cumulative convertible preference shares (“ICCPS”). The issuance of ICCPS involves the issuance of up to 30,000,000 ICCPS at an issue price of RM1.00 each. The ICCPS bears a maturity period of 3 years (from the date of ICCPS issue respectively, or until 16 January 2023, whichever is earlier) and a dividend rate of 8% per annum. The ICCPS shall not be listed or quoted on the Main Market of Bursa Securities. The ICCPS are convertible into new ordinary shares of PRG Asset (“PRG Asset Shares”) on the basis of 1 PRG Asset Share for every 1 ICCPS held by the subscriber on the maturity date of the ICCPS. Upon conversion, all the ICCPS shall become PRG Asset Shares and rank equally in all respects with PRG Asset Shares. On 5 November 2020, the Company announced that after due consideration, PRG Asset decided to terminate the issuance of ICCPS due to lack of investors participation. (viii) On 3 December 2019, the Company announced on the Proposed Private Placement of 40,288,200 Placement Shares representing up to 10% of the total number of 402,882,721 issued shares of the Company (excluding 417,800 treasury shares). Bursa Malaysia Securities Berhad had, vide its letter dated 10 December 2019, approved the listing of and quotation for the Placement Shares to be issued pursuant to the Private Placement. The Proposed Private Placement is valid for 6 months from 10 December 2019 and is expiring on 9 June 2020. On 24 February 2020, a total number of 5,737,700 of PRG shares were alloted and issued pursuant to the Private Placement, representing 14.24% of the Placement Shares for a total cash consideration of RM3,499,997.00 at issue price of RM0.61 per share. On 4 March 2020, a total number of 6,091,200 of PRG shares were alloted and issued pursuant to the Private Placement, representing 15.22% of the Placement Shares for a total cash consideration of RM3,500,003.52 at issue price of RM0.5746 per share. On 27 May 2020, a further number of 2,727,800 of PRG shares were alloted and issued pursuant to the Private Placement, representing 6.77% of the Placement Shares for a total cash consideration of RM500,005.74 at issue price of RM0.1833 per share. Bursa Malaysia Securities Berhad had, vide its letter dated 1 June 2020, granted the Company an extension of time until 30 August 2020 to complete the implementation of Private Placement subsequent to the submission of application for extension of time by the Company on 22 May 2020. On 14 July 2020, a total number of 7,000,000 of PRG shares were alloted and issued pursuant to the Private Placement, representing 17.37% of the Placement Shares for a total cash consideration of RM1,120,000.00 at issue price of RM0.16 per share. On 18 August 2020, another 5,000,000 of PRG shares were alloted and issued pursuant to the Private Placement, representing 12.41% of the Placement Shares for a total cash consideration of RM935,000.00 at issue price of RM0.187 per share. On 28 August 2020, the Company announced that a total number of 26,556,700 Placement Shares had been placed out and there will be no further share issuance under the Private Placement. (ix) On 26 August 2020, the Company announced that Premier Construction Sdn. Bhd. (“PCSB”) had on even date entered into a sale & purchase agreement (“SPA”) with Semangat Hikmat Sdn Bhd (“SHSB”) for the disposal of Batu Gajah Land for a total consideration of RM7,200,000. The Conditions Precedent of the SPA has not been completed. 41. SIGNIFICANT EVENT SUBSEQUENT TO THE END OF THE REPORTING PERIOD On 23 March 2021, the Board of FHL had approved the disposal of Rich Day Global Limited through its wholly-owned subsidiary, Delightful Grace Holdings Limited, to two independent third party purchasers for a total consideration of HKD8,500,000 (approximately RM4,400,000). PRG HOLDINGS BERHAD 190 Notes to the Financial Statements 31 December 2020 cont’d