On behalf of the Board of Directors of the Company, Mercury Securities Sdn Bhd (“Mercury Securities” or the “Principal Adviser”) wishes to announce that the Company proposes to undertake the following:-

(i)         proposed diversification of the business of PDZ and its subsidiaries (“PDZ Group” or the “Group”) to include the manufacture, sale and marketing of gloves and other related activities (“Gloves Business”) (“Proposed Diversification”);

(ii)         proposed consolidation of every 10 existing ordinary shares in PDZ (“PDZ Shares” or “Shares”) into 1 Share (“Consolidated Share”) (“Proposed Share Consolidation”);

(iii)        proposed renounceable rights issue of up to 797,749,896 new Shares (“Rights Shares”) together with up to 398,874,948 free detachable warrants in PDZ (“Warrants C”) on the basis of 6 Rights Shares together with 3 free Warrants C for every 1 Consolidated Share held by the entitled shareholders of the Company on an entitlement date to be determined (“Entitlement Date”) (“Entitled Shareholders”) (“Proposed Rights Issue with Warrants”);

(iv)        proposed variation of the utilisation of proceeds previously raised from a rights issue exercise previously undertaken by the Company which was completed on 7 February 2018 (“Previous Rights Issue”) (“Proposed Variation”); and

(v)        proposed establishment of an employees’ share options scheme (“ESOS” or “Scheme”) involving up to 15% of the total number of issued Shares (excluding treasury shares, if any) (“Proposed ESOS”).

Please refer to the attachment for further details on the above.

This announcement is dated 23 March 2021.