41
FRONTKEN CORPORATION BERHAD
(651020-T)
ANNUAL REPORT 2014
DIRECTORS’
REPORT
(cont’d)
OPTIONS GRANTED OVER UNISSUED SHARES
Warrants
The Company had issued 288,973,760 Warrants which were listed on Bursa Malaysia Securities Berhad on 16
March 2010 pursuant to the rights issue on the basis of two Warrants for every two Rights Shares subscribed.
The Warrants are constituted by a Deed Poll dated 22 January 2010 executed by the Company. Each Warrant entitles
the registered holder during the exercise period to subscribe for one new ordinary share at the exercise price of
RM0.18 per Warrant, subject to adjustment in accordance with the provisions of the Deed Poll. The Warrants not
exercised at the date of maturity will thereafter lapse and cease to be valid for any purpose.
The summary of the movements of Warrants is as follows:
Number of Warrants
Balance as
Balance as of
Issue date
Expiry date
of 1.1.2014
Granted
Exercised 31.12.2014
11.3.2010
10.3.2015
288,973,760
–
– 288,973,760
The ordinary shares to be issued upon the exercise of Warrants shall rank pari passu in all respects with the existing
issued ordinary shares of the Company except that they shall not be entitled to any dividends, rights, allotments
and/or other distributions, the entitlement date of which is prior to the date of allotment of the new shares arising
from the exercise of Warrants.
OTHER FINANCIAL INFORMATION
Before the financial statements of the Group and of the Company were made out, the directors took reasonable steps:
(a)
to ascertain that proper action had been taken in relation to the writing off of bad debts and the making of
allowance for impairment losses on receivables, and had satisfied themselves that all known bad debts had
been written off and that adequate allowance had been made for impairment losses on receivables; and
(b)
to ensure that any current assets other than debts which were unlikely to realise their book values in the
ordinary course of business had been written down to their estimated realisable values.
At the date of this report, the directors are not aware of any circumstances:
(a)
which would cause the amount written off for bad debts or the amount of allowance for impairment losses on
receivables in the financial statements of the Group and of the Company to be inadequate to any substantial
extent; or
(b)
which would render the values attributed to current assets in the financial statements of the Group and of
the Company misleading; or
(c)
which have arisen which render adherence to the existing method of valuation of assets or liabilities of the
Group and of the Company misleading or inappropriate; or
(d)
not otherwise dealt with in this report or financial statements which would render any amount stated in the
financial statements of the Group and of the Company misleading.
