Reference is made to the proposed utilisation of proceeds raised from the private placement of 87,912,000 new ordinary shares in K-Star as disclosed in the circular to shareholders dated 22 February 2018 (“Private Placement”). The Company has raised gross proceeds of RM7.03 million from the Private Placement.
The Board of Directors of K-Star (“Board”) wishes to announce that the Board had on 26 August 2019 resolved to vary and reallocate approximately RM 0.55 million and RM 0.05 million originally earmarked for the construction business and to defray the estimated expenses of the Private Placement respectively for the followings:
a) to solve its immediate needs to fund the production costs of its footwear business; and
b) for the general working capital of the Company which include professional fees, directors’ salary, fees, travelling and accommodation expenses.
Kindly refer to the attached document for the details of the Variations.
This announcement is dated 26 August 2019.