PRG Holdings Berhad Annual Report 2019

PRG HOLDINGS BERHAD 152 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 cont’d 21. SHARE CAPITAL AND TREASURY SHARES (continued) (a) During the financial year, the issued and paid-up ordinary share capital of the Company was increased from 310,751,274 to 403,300,521 by way of the issuance of 52,253,747 new ordinary shares pursuant to the exercise of Warrants 2014/2019 at an exercise price of RM0.375 per ordinary share for cash and issuance of 40,295,500 new ordinary shares at an exercise price of RM0.7445 per ordinary share as Consideration Shares for acquisition of two parcels of agriculture land planted with teak trees by a subsidiary of the Company, PRG Agro Sdn. Bhd.. (b) In the previous financial year, the issued and paid-up share capital of the Company was increased from 302,488,174 to 310,751,274 by way of the issuance of 3,457,100 new ordinary shares pursuant to the exercise of Warrants 2014/2019 at an exercise price of RM0.375 per ordinary share for cash and issuance of 4,806,000 new ordinary shares as Consideration Shares for acquisition of 55% of the enlarged share capital of PRG Active Sdn. Bhd.. (c) The owners of the parent are entitled to receive dividends as and when declared by the Company and are entitled to one (1) vote per ordinary share at meetings of the Company. All ordinary shares rank pari passu with regard to the residual assets of the Company. (d) Of the total 403,300,521 (2018: 310,751,274) issued and fully paid ordinary shares as at 31 December 2019, 417,800 (2018: 417,800) ordinary shares bought for RM87,000 (2018: RM87,000) are held as treasury shares by the Company. The number of outstanding ordinary shares in issue after deducting the treasury shares is 402,882,721 (2018: 310,333,474) ordinary shares as at 31 December 2019. (e) Warrants 2014/2019 (“Warrants”) On 7 July 2014, the Company issued 54,320,100 free detachable Warrants pursuant to the Rights Issue with Warrants Exercise on the basis of one (1) Warrant for every one (1) Rights Share subscribed. The Warrants are constituted by the Deed Poll dated 2 June 2014 (“Deed Poll”). The salient features of the Warrants are as follows: (i) Each Warrant entitles the registered holder, at any time during the Exercise Period, to subscribe for one (1) new ordinary share of the Company at the exercise price; (ii) The exercise price for the Warrants was fixed at RM0.75 per Warrant (adjusted to RM0.375 pursuant to the share split in the financial year ended 31 December 2016); (iii) The issue date of Warrants is 7 July 2014 and are valid for exercise for a period of 5 years from its issue date and will expire on 6 July 2019. Any Warrants not exercised by its expiry date will thereafter lapse and cease to be valid for any purpose; and (iv) The new shares to be issued arising from the exercise of the Warrants will, upon allotment and issuance, rank pari passu in all respects with then existing shares, save and except that the said new shares will not be entitled to any dividends, rights, allotments and/or other distributions that may be declared, made or paid, prior to the date of allotment of the said new shares. The movements in Warrants are as follows: Number of unexercised Warrants At 1 January 2019 92,819,926 Exercised (52,253,747) Expired on 6 July 2019 (40,566,179) At 31 December 2019 -