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