Reference is made to the earlier announcement in relation to the  Rights Issue with Warrants dated 28 May 2021.

The Board of Directors of JOE (“the Board”) wishes to inform that as at 31 March 2023, the Company has yet to fully utilise the proceeds of RM76.5 million ("Proceeds") raised from  Rights Issue with Warrants allocated for the investment in the Glove Business.

The Board has resolved to extend the timeframe for the utilisation of the Proceeds for another twelve (12) months (“Revised Timeframe”) to provide additional time for the Group to utilise the balance of Proceeds for the investment in the Glove Business ("Extension of Time").

Details of the Revised Timeframe is set out in the table below:

Note:

*the balance of the unutilised process of RM158,000 for the Estimated expenses for the Corporate Exercises had been reallocation into Investment in the Glove Business

The Board is of the opinion that the Revised Timeframe is in the best interest of the Group and will not have material adverse effect on the financial performance of the Group.

The oversupply of gloves in the market has resulted the price of the gloves to be competitive as the raw material price continues to volatile and currency fluctuations could hamper the growth of disposable gloves. The Board is currently evaluating the need of more automation in order to reduce dependency on foreign workers which is affecting all manufacturing sectors in Malaysia.

As of to-date, the Company had purchased two (2) nitrile butadiene rubber (NBR)/natural rubber (NR) powder free double former dipping lines from Fintec Glove Sdn Bhd. The machineries are located in a factory in Chepor, Ipoh. The factory is still pending for power supply before the Company could do the test run on the dipping line. In the meantime, the Management is in the process of applying relevant certificates and looking forward to conduct pre-commercialisation production.

Management is looking into an inline automate Automated Packing Machine (APM) solution for packing inspection/ counting/ pick/ place to bin for the entire back-end packaging solution for a more cost-effective way to build the glove lines, to reduce the cost and time as compared with the current manual process.

The Revised Timeframe does not require the approval of any other regulatory authorities or the shareholders of JOE.

The Company shall continue to be vigilant and prudent in managing the Rights Issue with Warrants and will continue to disclose the status of the utilisation in the Company's quarterly results and annual report until it is fully utilised.

This announcement is dated 26 May 2023.