Unless otherwise stated, the abbreviations and definitions used throughout this announcement shall have the same meanings as those previously defined in the Company’s Information Memorandum dated 28 March 2019 (“InfoMemo”).

INTRODUCTION

As disclosed in Section 2.5 of the InfoMemo in relation to the listing of Enest Group Berhad (“ENEST” or “Company”) on the LEAP Market of Bursa Malaysia Securities Berhad (“Bursa Securities”) on 7 August 2019 (“Listing”), the Company has raised gross proceeds of RM4.00 million (“Listing Proceeds”).

The Board of Directors of ENEST (“Board”) wishes to announce that ENEST has decided to extend the timeframe for the use of proceeds raised from the Listing (“EOT”).

DETAILS OF THE EOT

As at 31 March 2021, ENEST has used RM2.44 million of the Listing Proceeds and has yet to use the remaining balance of RM1.56 million from the Listing Proceeds. The details of EOT are as follows:

Note:

1. The excess amount of RM300,000 would be reallocated to the amount earmarked for working capital, consistent with the disclosure in the Information Memorandum.

RATIONALE FOR THE EOT

In view of the global business disruption caused by the COVID-19 pandemic, the Board expects a potential delay in its R&D expenditures to develop cosmetic products containing bird’s nest essence and also its brand development expenditure to strengthen its Bai Leng Yan brand which includes the rental and renovation costs of our new office and product showroom in Kuala Lumpur city center.

Therefore, the Board has decided to extend the timeframe to use the remaining balance of RM1.56 million from the Listing Proceeds for an additional 24 months (i.e. by 5 August 2023).

APPROVALS REQUIRED

The EOT is not subject to any approvals from Bursa Securities 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 28 June 2021.