On behalf of the Board of Directors of Lotus, KAF Investment Bank Berhad wishes to announce that Lotus has been notified by Lotus Essential Sdn. Bhd. (“LESB”) of its intention to convert its holding of 300,000,000 redeemable convertible preference shares (“RCPS”) through surrendering a combination of one (1) RCPS and RM0.05 in cash for one (1) new share in Lotus (“Share”) (“Proposed Conversion”). As it is not the intention of LESB and the person acting-in-concert, namely Wong Sak Kuan (“PAC”) to undertake a mandatory take-over offer for the remaining Shares and warrants of Lotus not already owned by them upon the Proposed Conversion, both LESB and the PAC intend to seek the approval of the Securities Commission Malaysia for the proposed exemption (“Proposed Exemption”).

Please refer to the attachment for further details on the Proposed Exemption.

This announcement is dated 24 July 2020.