16. CAPITAL AND RESERVES (CONTINUED) Warrant reserve (continued) The salient features of the Warrants are as follows: (continued) iii) Warrant holders must exercise the Warrants in accordance with the procedures set out in the Deed Poll and shares allocated and issued upon exercise shall rank pari passu in all respects with the then existing shares of the Company, and shall be entitled for any dividends, rights, allotments and/or other distributions after the issue and allotment thereof. iv) The Warrant holders are not entitled to any voting rights or to participate in any distribution and/or offer of further securities in the Company until and unless such Warrant holders exercise their warrants for new shares in the Company. v) The Deed Poll and accordingly the Warrants, are governed by and shall be construed in accordance with the laws of Malaysia. The Warrants have lapsed on 30 July 2021 and removed from the Main Market of Bursa Malaysia Securities Berhad on 2 August 2021. The movement of the Warrants since the listing and quotation thereof is as follows: Entitlement for ordinary shares At 1.7.2021 Exercised Lapsed At 30.6.2022 Number of unexercised Warrants 375,139,508 (366,020,666) (9,118,842) – The fair value of RM0.008 per Warrant is determined using the Binomial Option pricing model based on the following key assumptions: Interest rate 3.19% Expected volatility of the Company’s share price 39.85% Share option reserve The share option reserve comprises the cumulative value of employee services received for the issue of share options. When the option is exercised, the amount from the share option reserve is transferred to share capital. When the share option expires, the amount from the share option reserve is transferred to retained earnings. At an extraordinary general meeting held on 1 April 2021, the shareholders of the Company approved and established a new ESOS By-Laws of up to 5% of the total number of issued shares of the Company at any point in time over the duration of the new ESOS to eligible Directors and employees of the Company and its subsidiaries (excluding dormant subsidiaries) (“Eligible Persons”). 263 DNeX INTEGRATED REPORT 2022
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