MKH Annual Report 2017

ISSUES OF SHARES During the financial year, the following issues of shares was made by the Company: Class Number Term of Issue Purpose of Issue Ordinary share 42,625,187 Cash Rights issue of 1 new ordinary share for every 10 existing ordinary shares at an issue price of RM1.89 per rights share Ordinary share 85,250,374 Non-cash Bonus issue of 2 new ordinary shares for every 1 rights share subscribed Ordinary share 15,582,377 Exercise of warrants Exercise of warrants by warrant holders The new ordinary shares issued rank pari passu in all respects with the existing shares of the Company. Other than as stated above, there were no other changes in issued and paid-up capital of the Company during the financial year. WARRANTS On 31 December 2012, the Company allotted and issued 29,104,378 free warrants constituted under the deed poll dated 23 November 2012. The salient features of the warrants are as follows: (i) entitles its registered holders to subscribe for one (1) new ordinary share at the exercise price during the exercise period; (ii) the exercise price is RM2.26 per share subject to adjustments in accordance with the provisions of the deed poll executed; and (iii) the warrants may be exercised at any time for a period of five years from 31 December 2012 to 30 December 2017 (“exercise period”). Warrants that are not exercised during the exercise period will thereafter lapse and become void. The exercise price was adjusted to RM1.89 and RM1.55 per share pursuant to the bonus issue on 20 May 2014 and rights with bonus issue on 1 June 2017 respectively. Directors’ Report 75 MKH Berhad • Annual Report 2017