The Warrants are issued to the entitled shareholders of Lotus KFM Berhad (formerly known as Kuantan Flour Mills Berhad) ("Lotus") pursuant to the:-

(i)	renounceable rights issue of 477,595,420 new ordinary shares in Lotus ("Lotus Shares") ("Rights Shares") at an issue price of RM0.10 and on the basis of five (5) Rights Shares for every one (1) Lotus Share held by the entitled shareholders of Lotus as at 5.00 p.m. on 30 October 2019 and the placement investor following the Private Placement together with 238,797,710 Warrants on the basis of one (1) Warrant for every two (2) Rights Shares subscribed for ("Rights Issue"); and

(ii)	restructuring of debts owing to the scheme creditors of Lotus via the issuance of 116,580,700 new Lotus Shares ("Settlement Shares") at an issue price of RM0.10 together with 58,290,350 Warrants on the basis of one (1) Warrant for every two (2) Settlement Shares issued ("Debt Settlement").

Each Warrant carries the entitlement to subscribe for one (1) new Lotus Share at the exercise price of RM0.10 and at any time during the exercise period (as indicated above) ("Exercise Period"), subject to the adjustments in accordance with the provisions of the deed poll dated 2 October 2019 constituting the Warrants. Any Warrants not exercised during the exercise period will thereafter lapse and cease to be valid for any purpose.

This announcement is dated 27 November 2019.