1.  INTRODUCTION

Reference is made to the Company’s announcements on 25 March 2022 in relation to the Company’s Relief Application to Bursa Securities from classifying the Company as an affected listed issuer pursuant to Paragraph 8.03A(2)(b) of the Main Market Listing Requirements (“MMLR”) of Bursa Malaysia Securities Berhad (“Bursa Securities”) and 3 June 2022 in relation to Bursa Securities’ rejection to the Relief Application.

Upon due consideration of the existing facts and the just improving property market conditions which will have timing gaps in recognising the revenue by IWCity and its subsidiaries (collectively, the “Group”), the Board of Directors of the Company (“Board”) has decided not to appeal on Bursa Securities’ rejection to the Relief Application but instead to focus on improving the business operations of the Group within the 12 months regularisation period. Pursuant thereto, the Company is an affected listed issuer under Paragraph 8.03A of the MMLR (“Paragraph 8.03A affected listed issuer”).

For avoidance of doubt, a Paragraph 8.03A affected listed issuer is not a Practice Note 17 (“PN17”) issuer under the MMLR.

As disclosed in the Company’s announcement on 25 March 2022, the Group has an unbilled sales of approximately RM65 million, which will be recognised as revenue progressively in the current financial year onwards. Further, the Group has a total land bank of approximately 1,000 acres which is within the Central Business District (CBD) near the Johor Bahru-Singapore Rapid Transit System (RTS) link station in Johor Bahru and is expected to generate long-term sustainable development for the Group’s business activities.

On 13 May 2022, the Company has announced the execution of a heads of agreement in regards to the proposed disposal by the Group of 2 parcels of land for an indicative disposal consideration ranging from RM90 million to RM95 million subject to execution of the definitive agreement, which will be recognised as revenue from land sales upon completion.

In view of the foregoing, the Board believes that the Company would be able to rectify its Paragraph 8.03A affected listed issuer status within the said regularisation period.

2.  OBLIGATIONS OF THE COMPANY

Pursuant to Paragraph 8.03A(3) of the MMLR, IWCity, as a Paragraph 8.03A affected listed issuer, must:-

(a)  immediately announce to Bursa Securities of its condition and provide such information from time to time for public release in accordance with the disclosure obligations set out in Paragraph 4.0 of PN17 of the MMLR, with the necessary modifications;

(b)  regularise its condition by complying with the requirements set out in Paragraph 8.04(3) and Paragraph 5.0 of PN17 of the MMLR, with the necessary modifications; and

(c)  comply with such other requirements or do such other acts or things as may be prescribed or required by Bursa Securities.

As a Paragraph 8.03A affected listed issuer, the Company is required to comply with the following:-

(i)  regularise its condition within 12 months from the date of this announcement in the following manner:-

     (a) submit a regularisation plan to the Securities Commission Malaysia (“SC”) if the regularisation plan will result in a significant change in the business direction or policy of the Company; or

     (b) submit a regularisation plan to Bursa Securities if the plan will not result in a significant change in the business direction or policy of the Company, and to obtain Bursa Securities’ approval to implement the regularisation plan;

(ii)  provide such information as may be prescribed by Bursa Securities from time to time for public release;

(iii)  do such other acts of things as may be required by Bursa Securities;

(iv)  implement the plan within the timeframe stipulated by the SC or Bursa Securities, as the case may be;

(v)  announce within 3 months from this announcement, on whether the regularisation plan will result in a significant change in the business direction or policy of the Company;

(vi)  announce the status of the regularisation plan and the number of months to the end of the relevant timeframes referred to in paragraph 5.1, 5.2 or 5.3 of PN17 of the MMLR on a monthly basis until further notice from Bursa Securities;

(vii)  announce the Company's compliance or non-compliance with a particular obligation set out in PN17 of the MMLR on an immediate basis;

(viii) announce the details of the regularisation plan; and

(ix)  where the Company fails to regularise its condition, announce the dates of suspension and de-listing of its listed securities, immediately upon notification of suspension and de-listing by Bursa Securities.

3.  CONSEQUENCE OF NON-COMPLIANCE

Bursa Securities may suspend the trading of the listed securities of the Company and de-list the Company if IWCity fails to comply with any part of its obligations under paragraph 2 above within the timeframes permitted by Bursa Securities.

4.  STATUS OF PLAN TO REGULARISE CONDITION

The Company is looking into formulating a regularisation plan to address its Paragraph 8.03A affected listed issuer status and will make the necessary announcement on the regularisation plan in due course.

This announcement is dated 10 June 2022.