My EG Services Berhad Annual Report 2020

ANNUAL REPORT 2020 231 FINANCIAL STATEMENTS NOTES TO THE FINANCIAL STATEMENTS For The Financial Year Ended 31 December 2020 (CONT’D) 48. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR (CONT’D) (f) (cont’d) On 1 July 2020, Bursa Securities resolved and approved the listing and quotation of 12,500,000 Consideration Shares to be issued pursuant to the Proposed Acquisition, subject to certain conditions. On 7 July 2020, the Proposed Acquisition has been completed in accordance with the terms and conditions of the SSA. Following the completion of the Proposed Acquisition, MYEGC holds 10% equity interest in the total issued share capital of S5. Subsequently on 16 July 2020, MYEGC entered into a Heads of Agreement (“HOA”) with S7 Holdings Sdn. Bhd., MAL, Avocat Sdn. Bhd., Ancom Logistics Berhad, and Ancom Berhad to undertake a Proposed Reverse Takeover Exercise (“Proposed RTO”) which entails the proposed acquisition by ALB of the entire share capital of S5. The HOA is effective upon the signing of the HOA and shall be terminated upon occurrence of any of the following events:- (i) mutual written agreement to terminate by the parties at any time; or (ii) upon execution of the Share Sale Agreement between the parties in relation to the Proposed RTO; or (iii) expiry of eighteen (18) months from the date of the HOA. As at to date, there has been no further updates on the Proposed RTO to Bursa Securities. (g) On 1 June 2020, the Company proposed to undertake the following:- (i) establishment of a DRP that provides shareholders of the Company with an option to elect to reinvest their cash dividend declared by the Company into new ordinary shares in MYEG (“Proposed DRP”); and (ii) establishment of an Employee Share Option Scheme (“ESOS”) of up to 10% of the total number of issued shares of the Company (excluding treasury shares) at any point in time over the duration of the ESOS for eligible persons (“Proposed ESOS”); and (iii) diversification of the existing business of the Group to include the provision of financial services. Further on 29 June 2020, Bursa Securities resolved and approved the following:- (i) listing and quotation of up to 66,400,109 new MYEG Shares to be issued pursuant to the Proposed DRP; and (ii) listing and quotation of such number of new MYEG Shares, representing up to 10% of the Company’s total number of issued shares (excluding treasury shares), to be issued pursuant to the Proposed ESOS. Following the announcements on the 1st DRP and 2nd DRP, on 28 September 2020 it was announced that the issue price of new ordinary shares of MYEG has been fixed at RM 1.28 per share. Subsequently on 5 November 2020, MYEG has allotted and issued 36,549,480 new MYEG Shares pursuant to the 1 st DRP and 9,074,264 new MYEG Shares pursuant to the 2 nd DRP. The new MYEG shares have been listed and quoted on the Main Market of Bursa Securities effective 6 November 2020, thus marking the completion of the 1 st and 2 nd DRP. It was also further announced that the effective date for the implementation of the ESOS will be on 24 December 2020. (h) On 12 June 2020 and 2 November 2020, CPSSB, a subsidiary of the Company, has entered into a frame supply agreement with mPass Mobility Sdn. Bhd. and AllDebit Sdn. Bhd. for the delivery of POS terminal up to 420 and 200 units which amounted to RM 683,400 and RM 190,800 respectively under a lease term for a period of time in accordance with the terms and condition contained in the agreements.