(Unless stated otherwise, definitions used in this announcement shall carry the same meaning as defined in the Company’s announcement dated 24 November 2021 in relation to the variation of utilisation of proceeds)

We refer to Bursa Malaysia Securities Berhad's queries dated 25 November 2021 in relation to the Variation of Utilisation of Proceeds (“Variation”), we are pleased to furnish the additional information as below:

(1)       The percentage of change as compared to the total proceeds raised by Volcano Berhad from its initial public offering, and whether such Variation constitutes a material change to the utilisation of proceeds in accordance with Rule 8.24 of the ACE Market Listing Requirements.

The Company had utilised RM2.73 million to purchase seven (7) units of laser cutting machines as compared to the proposed  six (6) units of laser cutting machines of RM3.55 million. Thus, the balance funds of RM0.82 million is the excess proceeds to be utilised for the working capital requirements in accordance to Section 4.10 of the Prospectus which states that any excess funds not utilised for this purpose will be utilised to meet the working capital requirements of the Group.  

The unutilised sum of RM2.00 million for the purchase of five (5) units of pick and paste machines was changed for the working capital requirements. Therefore, the percentage of change of RM2.00 million as compared to the total proceeds raised by Volcano Berhad of RM8.75 million is 22.86%, which is less than 25% and does not constitute a material change to the utilisation of proceeds in accordance with Rule 8.24 of the ACE Market Listing Requirements.

(2)       A statement on whether the Variation is subject to the approval of shareholders of Volcano Berhad.

Based on the percentage ratio of 22.86% in Item (1) above, the Variation is not subject to the approval of shareholders of Volcano Berhad.

(3)       To clarify how does the acquisition of an additional unit of laser cutting machine results in an excess proceeds of RM0.82 million.

The excess proceeds arose as the Company managed to source for the laser cutting machines at a lower price from alternative suppliers.

The announcement is dated 25 November 2021.