(For consistency, the abbreviations used throughout this announcement shall have the same meanings as defined in the announcement dated 14 December 2020 & 8 September 2022 in relation to the Proposals and the first extention of time, 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 RM4.185 million allocated for the purchase of equipment for the event management segment ("Unutilised Proceeds”).
The Covid pandemic's aftermath has caused a number of supply chain interruptions in terms of labor availability and output capabilityas well as the significant change toward a gig economy mentality, logistic fulfillment presents a hurdle in the current work market. After considering the matter in the Board of Directors' Meeting held on 28 August 2023, the Board had resolved to extend the timeframe for another additional twelve (12) months to use the Unutilised Proceeds. This extension for using the remaining Unutilised Proceeds will be until 31 August 2024 ("Revised Time Frame") in order to give the Group more time to use 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 utilisationRM’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
|
13,7059
|
9,519
|
4,185
|
Within 18 months
|
Within 42 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
|
22,852
|
4,185 |
-
|
-
|
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 30 August 2023.