PRG Holdings Berhad Annual Report 2019

ANNUAL REPORT 2019 191 NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2019 cont’d 39. SIGNIFICANT EVENTS SUBSEQUENT TO THE END OF THE REPORTING PERIOD (continued) (ii) On 3 December 2019, the Company announced on the Proposed Private Placement of 40,288,200 Placement Shares representing up to 10% of the total number of 402,882,721 issued shares of the Company (excluding 417,800 treasury shares). Bursa Malaysia Securities Berhad had, vide its letter dated 10 December 2019, approved the listing of and quotation for the Placement Shares to be issued pursuant to the Private Placement. On 26 February 2020, a total number of 5,737,700 of PRG shares were alloted and issued pursuant to the Private Placement, representing 14.24% of the Placement Shares for a total cash consideration of RM3,499,997.00 at issue price of RM0.61 per share. On 6 March 2020, a total number of 6,091,200 of PRG shares were alloted and issued pursuant to the Private Placement, representing 15.22% of the Placement Shares for a total cash consideration of RM3,500,003.52 at issue price of RM0.5746 per share. The Proposed Private Placement is valid for 6 months from 10 December 2019 and is expiring on 9 June 2020. (iii) The World Health Organisation declared the 2019 Novel Coronavirus infection (“COVID-19”) a pandemic on 11 March 2020. This was followed by the Government of Malaysia issuing a Federal Government Gazette on 18 March 2020, imposing a Movement Control Order (“MCO”) effective from 18 March 2020 to 31 March 2020 arising from COVID-19 pandemic. The MCO was extended for 2 weeks consecutively on 25 March 2020 and 10 April 2020 until 14 April 2020 and 28 April 2020 respectively, followed by another announcement on 23 April 2020 on the further extension of the MCO for another 2 weeks until 12 May 2020. Since these developments occurred subsequent to the end of the reporting period, the COVID-19 pandemic is treated as a non-adjusting event in accordance with MFRS 110 Events after the Reporting Period . Consequently, the financial statements for the financial year ended 31 December 2019 do not reflect the effects arising from this non-adjusting event. The financial reporting impact of the COVID-19 pandemic could be significant to the Group due to: (a) Reduced consumer demand for goods and services of the Group owing to lost income and/or restrictions on consumers’ ability to move freely; (b) Lack of investment in capital improvements and construction, thus reducing demand for goods and services of the Group; (c) Reduction in market prices of financial assets, including debt and equity instruments; and (d) Disruption of global supply chains due to the restrictions imposed on the movement of people and goods. The Group is in the process of assessing the financial reporting impact of COVID-19 pandemic since ongoing developments remain uncertain and cannot be reasonably predicted as at the date of authorisation of the financial statements. The Group anticipates that the potential financial reporting impact of COVID-19 would be recognised in the financial statements of the Group during the financial year ending 31 December 2020.