We refer to the announcements made on 6 December 2019, 31 January 2020, 9 March 2020, 17 March 2020, 1 April 2020, 27 May 2020, 9 June 2020, 30 June 2020, 6 August 2020, 19 August 2020, 7 September 2020, 25 November 2020, 27 November 2020 and 14 December 2020 in relation to the Proposals (“Announcements”). For consistency purposes, the abbreviations used in this announcement are the same as those previously defined in the Announcements unless otherwise define herein.

SJ Securities Sdn Bhd, on behalf of the Board, wishes to announce that the Company has decided not to proceed with the Rights Issue of ICPS, which was approved by its shareholders at the Extraordinary General Meeting held on 6 August 2020. 

The Company's decision was made after carefully considering recent developments which had affected the Company's ability to successfully complete its Rights Issue of ICPS, including the likelihood that the Minimum Subscription Level for the Rights Issue of ICPS will not be able to be met, as well as prevailing unfavorable market conditions brought about by the COVID-19 pandemic, which is not conducive for the implementation of the Rights Issue of ICPS.  

The Company had intended to raise rights issue proceeds of RM20.0 million and RM62.5 million from the Rights Issue of ICPS, of which RM16.0 million and RM56.0 million under the Minimum Subscription Level and Maximum Subscription Level, respectively were to be used to fund the existing construction projects, which are the Perak Project and Genting Sempah Project. The expected completion dates of the Perak Project and Genting Sempah Project have been deferred by 1 to 1.5 years due to the COVID-19 pandemic.

In fact, for the Perak Project, the project owner had sold 90% of its Phase 1 comprising 112 units of semi-detached houses and 2 units of bungalows with a total gross development value of RM71.0 million and gross development costs of RM47.0 million, generating net development proceeds of RM24.0 million. In this respect, the funding allocations from the rights issue proceeds for the Perak Project of RM12.0 million to RM40.0 million under the Minimum Subscription Level and Maximum Subscription Level are no longer applicable.

Similarly for the Genting Sempah Project, the project owner had indicated that the project completion is expected to be delayed by at least 1 year from mid-2023 to mid-2024 as their project is targeted to both domestic and foreign purchasers. The request for deferment of the project launches had also affected the utilization of the rights issue proceeds allocated for the Genting Sempah Project of RM4.0 million and RM16.0 million under the Minimum Subscription Level and Maximum Subscription Level, respectively.

This announcement is dated 30 March 2021.