Eversendai Corporation Berhad, Kuala Lumpur, 17 June 2020 – Eversendai with MIDF Amanah Investment Bank Berhad as its principal advisor announced to undertake the proposed issuance of up to 390,550,000 new free warrants on the basis of 1 warrant for every 2 existing ordinary shares held by shareholders of Eversendai Corporation Berhad. The entitlement date will be determined and announced during the Company’s upcoming AGM.

The warrants will be issued at no cost to the entitled shareholders and the initial 3-year warrant exercise price has been fixed at RM0.32 per warrant. From the 3rd anniversary date up to one market day prior to the 4th anniversary date, the 1st step-up warrant exercise price has been fixed at RM0.38 per warrant. From the 4th anniversary date up to the maturity date of the warrants, 2nd step-up warrant exercise price has been fixed at RM0.45 per warrant.

Application has been made to Bursa Securities for the admission of the warrants to the official list of the Main Market of Bursa Securities as well as for the listing of and quotation for the warrants and the new Eversendai ordinary shares arising from the exercise of the warrants on the Main Market of Bursa Securities.

The proposed free warrants are not expected to raise any immediate funds upon its issuance as the warrants will be issued at no cost to the entitled shareholders. Notwithstanding that the exercise price of the warrants has been fixed on a step-up basis, the exact quantum of the proceeds that may be raised by Eversendai would depend upon the exercise price and the actual number of warrants exercised during the tenure of the warrants. As such, the timeframe and breakdown for the utilisation of the proceeds are not determinable at this juncture.

For illustrative purposes only, assuming the full exercise of up to 390,550,000 warrants at the initial exercise price of RM0.32 each, the gross proceeds to be raised is up to RM124.98 million. In the event of the full exercise of up to 390,550,000 warrants at the 2nd step-up exercise price of RM0.45 each, the Company could potentially raise a maximum gross proceeds of RM175.75 million. Such proceeds if raised, shall be utilised to reduce the existing borrowings as well as working capital requirements of the Eversendai Group.

Tan Sri Dato’ A K Nathan, Executive Chairman and Group Managing Director of Eversendai Corporation Berhad is of the view that the proposed free warrants is an appropriate avenue to reward the existing shareholders of Eversendai after taking into consideration, amongst others, to recognise and appreciate Eversendai’s shareholders for their continuous support by enabling them to participate in the convertible securities without incurring any cost; to provide the shareholders with an opportunity to further increase their equity participation in the Company by exercising the warrants at a pre-determined price over the tenure of the warrants; to allow the shareholders of the Company to further participate in the future prospects and growth of the Group or any potential capital appreciation in the warrants and the Eversendai Shares, as and when the warrants are exercised; and to help to strengthen the Group’s capital base and shareholders’ funds as well as potentially provide funds for the Eversendai Group to pare down its borrowings and working capital requirements, as and when the warrants are exercised.

The proposed free warrants are not expected to have an immediate material effect on the EPS of the Company. The potential effect of the exercise of the warrants on the future EPS of Eversendai will depend upon, amongst others, the number of warrants exercised at any point in time and the returns generated from the utilisation of proceeds arising from the exercise of the warrants.