BABA

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OTHERS BABA ECO GROUP BERHAD (BABA ECO OR THE COMPANY) EXTENSION OF TIME FOR THE UTILISATION OF PROCEEDS FROM THE EXCLUDED ISSUE

BABA ECO GROUP BERHAD

Type Announcement
Subject OTHERS
Description
BABA ECO GROUP BERHAD (BABA ECO OR THE COMPANY)
EXTENSION OF TIME FOR THE UTILISATION OF PROCEEDS FROM THE EXCLUDED ISSUE

 

BABA ECO GROUP BERHAD (“BABA ECO” OR “THE COMPANY”)

EXTENSION OF TIME FOR THE UTILISATION OF PROCEEDS FROM THE EXCLUDED ISSUE

 

INTRODUCTION

As disclosed in section 2 subsection iv of the Company’s Supplementary Information Memorandum dated 13 June 2019 to be read in conjunction with Section 2.5 of the Company's Information Memorandum dated 19 September 2018 in relation to the listing of the Company on the LEAP Market of Bursa Malaysia Securities Berhad on 22 July 2019 ("Listing Date"), the Company has raised gross proceeds of approximately RM3.58 million from its excluded issue (“Listing Proceeds”).

 

The Board of Directors of Baba Eco (“Board”) wishes to announce that it has deliberated and resolved to extend the timeframe (“EOT”) for the remaining unutilised Listing Proceeds.

 

DETAILS OF THE EOT

As at 15 February 2021, the Company has utilised approximately RM2.40 million of the Listing Proceeds and has yet to use the remaining balance of approximately RM1.17 million from the Listing Proceeds. The details of EOT are as follows:

 

Purpose

Proposed utilisation

 

 

RM’000

Actual utilisation

 

 

RM’000

Balance

 

 

 

RM’000

Estimated timeframe for utilisation upon listing

Revised timeframe for the utilisation of proceeds

Capital expenditure

1,500

1,326

174

21 July 2021

By 20 July 2023

R&D expenditure

500

-

500

21 July 2021

By 20 July 2023

Overseas expansion

500

-

500

21 July 2021

By 20 July 2023

Purchase of production equipment

800

800

-

Fully utilised

-

Working capital

275

275

-

Fully utilised

-

 

 

 

 

 

 

Total

3,575

2,401

1,174

 

 

 

       

 

 

RATIONALE FOR THE EOT

In view of the global business disruption caused by the COVID-19 pandemic, the Board expects a potential delay in the utilisation of the remaining Listing Proceeds for the purpose of capital expenditure to expand the production facilities of existing plants and the R&D expenditure to develop and introduce a new series of organic fertilisers and natural pesticides with the name of “Eco-Merchandise” and also for the purpose of overseas expansion to expand our overseas sales and marketing efforts by establishing a physical presence in the neighbouring countries including Thailand, Myanmar, Cambodia, and Vietnam.

 

Therefore, the Board has decided to extend the timeframe for the utilisation of the remaining balance of approximately RM1.17 million from the Listing Proceeds for an additional 24 months (i.e. by 20 July 2023).

 

APPROVALS REQUIRED

The EOT is not subject to any approvals from any regulatory authorities or shareholders of the Company. The Board shall continue to be vigilant and prudent in managing the remaining Listing Proceeds and will continue to disclose the status of the utilisation of the remaining Listing Proceeds in the Company’s half yearly report on consolidated results until its full utilisation.

 

This announcement is dated 31 May 2021.






Announcement Info

Company Name BABA ECO GROUP BERHAD
Stock Name BABA
Date Announced 31 May 2021
Category General Announcement for PLC
Reference Number GA1-31052021-00119