FRONTKEN CORPORATION BERHAD 200401012517 (651020-T) ANNUAL REPORT 2024 52 DIRECTORS’ REPORT (CONT’D) ISSUES OF SHARES AND DEBENTURES During the nancial year: (a) the Company increased its issued and paid-up share capital from RM118,441,045 to RM155,606,845 by way of issuance of 9,291,450 new ordinary shares from the exercise of Warrants 2021/2026 at the exercise price of RM4 per warrant as disclosed in Note 21 to the nancial statements which amounted to RM37,165,800. The new ordinary shares issued rank pari passu in all respects with the existing ordinary shares of the Company. (b) there were no issues of debentures by the Company. TREASURY SHARES During the nancial year, the Company did not purchase its issued ordinary shares from the open market. The shares purchased are being held as treasury shares in accordance with Section 127(6) of the Companies Act 2016 and are presented as a deduction from total equity. As at 31 December 2024, the Company held 7,246,250 treasury shares at a carrying amount of RM3,739,069. The details on the treasury shares are disclosed in Note 22 to the nancial statements. OPTIONS GRANTED OVER UNISSUED SHARES During the nancial year, no options have been granted by the Company to any parties to take up any unissued shares of the Company. WARRANTS On 4 May 2021, the Company issued 524,137,195 warrants pursuant to bonus issue of warrants to all the entitled shareholders of the Company on the basis of one (1) warrant for every two (2) existing ordinary shares held in the Company. The warrants were constituted under a Deed Poll dated 14 April 2021 and each warrant entitled the registered holder the right at any time during the exercise period from 4 May 2021 to 3 May 2026 to subscribe in cash for one new ordinary share of the Company at an exercise price of RM4.00 each. The new ordinary shares allotted and issued upon exercise of the warrants shall rank pari passu in all respects with the existing ordinary shares of the Company, save and except that they shall not be entitled to any dividends, rights, allotments and/or other distributions, the entitlement date of which is prior to the date of allotment of the new ordinary shares arising from the exercise of the warrants. As at 31 December 2024, the total number of warrants that remain unexercised were 514,845,745 units. The details of the warrants are disclosed in Note 23 to the nancial statements. OTHER FINANCIAL INFORMATION Before the nancial statements of the Group and of the Company were made out, the directors took reasonable steps: (a) to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of allowance for impairment losses on receivables, and satis ed themselves that there are no known bad debts and that adequate allowance had been made for impairment losses on receivables; and (b) to ensure that any current assets which were unlikely to realise their book values in the ordinary course of business had been written down to their estimated realisable values.
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