On 27 May 2019, MIDF Investment and Astramina had, on behalf of the Board, announced that the Company proposes to undertake the Proposed Share Capital Reduction, Proposed Share Consolidation, Proposed Rights Issue of Shares with Warrants and Proposed Liabilities Settlement.

On 18 July 2019, MIDF Investment and Astramina had, on behalf of the Board, announced the following:

(i) a revision to the Proposed Share Capital Reduction;

(ii) an update on the Proposed Rights Issue of Shares with Warrants;

(iii) an update on the Proposed Liabilities Settlement; and

(iv) a Proposed Restricted Issue.

The update on the Proposed Rights Issue of Shares with Warrants and Proposed Restricted Issue entail additional undertakings from existing shareholders of SGB, namely TSWA and GGSB, for an amount of up to RM21.00 million each to meet the Minimum Subscription Level.  Further thereto, on 17 July 2019, the Company entered into the TSWA Loan Agreement and GGSB Loan Agreement. Pursuant to the TSWA Loan Agreement and GGSB Loan Agreement, both TSWA and GGSB had each provided RM21.00 million to the Company and the said loan amount was disbursed to the Company on 19 July 2019 (“Date of Full Drawdown”).

Further, the loans of RM21.00 million extended by TSWA (“TSWA Loan”) and GGSB (“GGSB Loan”), respectively, including any interest thereon and all other charges whatsoever in connection therewith and/or incidental thereto shall be repaid in full by one bullet repayment no later than the last day of the period of six (6) months from the Date of Full Drawdown, i.e.18 January 2020 (“Repayment Deadline”), pursuant to the TSWA Loan Agreement and GGSB Loan Agreement.

The Board wishes to announce pursuant to Paragraph 9.19A of the Listing Requirements that the Company has defaulted in repaying in full of the bullet payment of RM21.00 million to TSWA and GGSB, respectively, pursuant to the TSWA Loan Agreement and GGSB Loan Agreement, which amount to a total of RM42.00 million together with the interest, on the Repayment Deadline.

Further thereto, on 20 January 2020, in respect of the TSWA Loan Agreement and GGSB Loan Agreement, the Company received a letter of demand from:

(a) Messrs Mah-Kamariyah & Philip Koh Advocates & Solicitors, issued for and on behalf of TSWA. TSWA had demanded RM21,859,325.61, which has become due and payable on 17 January 2020, within five (5) days of the date of the said letter of demand; and

(b) GGSB demanding immediate full repayment of the sum of RM21.00 million plus accrued interest of RM854,000 within 5 days from the date of the said letter of demand.

Please refer to the attachment for further details of the announcement.

This announcement is dated 21 January 2020.