(For consistency, the abbreviations used throughout this announcement shall have the same meanings as defined in the announcement dated 14 December 2020 in relation to the Proposals, where applicable, unless stated otherwise or defined herein.)
Reference is made to the utilisation of proceeds of RM27.038 million raised from the Private Placement of 106,030,800 new ordinary shares in XOX Networks (“Private Placement”) which had been completed and announced by the Company on 1 March 2021.
The Board of Directors of XOX Networks (“Board”) wishes to announce that, as at the date of this announcement, the proceeds had been fully utilised save for an amount of RM7.275 million allocated for the purchase of equipment for the event management segment (Unutilised Proceeds”).
The event management sector has been adversely affected by the disruptive effects of COVID-19. Movement Control Order (“MCO”), Conditional MCO, cross border travel restrictions and regulatory prohibitions on mass gatherings have had a negative impact to the Group’s event management business. The Board has deliberated and resolved to extend the timeframe for an additional twelve (12) months until 31 August 2023 (“Revised Time Frame”) for the utilisation of the remaining Unutilised Proceeds to provide additional time for the Group to utilise the Unutilised Proceeds for the purchase of equipment for the event management segment.
The details of the Extension of Time are set out below:
|
Details of utilisation
|
Proposed utilisation
RM’000
|
Actual utilisation
RM’000
|
Unutilised Proceeds RM’000
|
Intended time frame for utilisation
|
Revised Time Frame for utilisation
|
|
Purchase of equipment for the event management segment
|
13,705
|
6,430
|
7,275
|
Within 18 months
|
Within 30 months
|
|
Additional funds for the financial solutions segment
|
8,938
|
8,938
|
-
|
Within 12 months
|
-
|
|
Working capital
|
3,602
|
3,602
|
-
|
Within 12 months
|
-
|
|
Estimated expenses for the Proposals
|
793
|
793
|
-
|
Immediate
|
-
|
|
Total
|
27,038
|
19,763
|
7,275
|
-
|
-
|
The Board is of the opinion that the Revised Time Frame is in the best interest of the Group and will not have material adverse effect on the financial performance of the Group.
The Company shall continue to be vigilant and prudent in managing the Unutilised Proceeds and will continue to disclose the status of the utilisation in the Company's quarterly results and annual reports until it is fully utilised.
The Revised Time Frame does not require the approval of any regulatory authorities or the shareholders of the Company.
This announcement is dated 8 September 2022.