My EG Services Berhad Annual Report 2021

MY E.G. SERVICES BERHAD Registration No. 200001003034 (505639-K) 254 NOTES TO THE FINANCIAL STATEMENTS ʹˢ˥ ˧˛˘ Ѓˡ˔ˡ˖˜˔˟ ˬ˘˔˥ ˘ˡ˗˘˗ ʦʤ ʷ˘˖˘ˠ˕˘˥ ʥʣʥʤ (CONT’D) 49. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR (CONT’D) (o) On 17 June 2021, MYEGM, a wholly owned subsidiary of the Company and MYEG Philippines, a joint venture company of the Company entered into joint venture agreements respective in their respective territories. MYEGM had entered into a Joint Venture Framework Agreement with Shigatse Service Co., Ltd (“Shigatse”), to establish a joint venture company in Malaysia (“JV1”), while MYEG Philippines had entered into a Joint Venture Agreement with SinoPhil Biotech Inc. and Shigatse to establish a joint venture company in the Republic of the Philippines (“JV2”) for the following purposes:- (i) exclusive procurement, import, distribution of recombinant protein subunit vaccine for COVID-19 (“COVID-19 Vaccine”) and all other related business activities related to the distribution of COVID-19 Vaccine in the respective territories, including but not limited to procurement of all requisite licenses, qualifications, emergency use authorisation, approvals and registrations from the respective territories’ Government (“Distribution Business of COVID-19 Vaccine”) for JV1 and JV2; (ii) exclusive or non-exclusive distribution of COVID-19 Vaccine outside of Malaysia for JV1; (iii) exclusive or non-exclusive distribution of other vaccines, medicines or products from China within and outside of Malaysia for JV1; and (iv) exclusive importation and distribution of other types of vaccines and pharmaceutical products from China within the Philippines for JV2. (p) On 10 June 2020, the Company proposed to seek its shareholder’s approval for the proposed allocation of Employee Share Option Scheme (“ESOS”) to the director (“Proposed ESOS”) of the Company subsequent to the approval for the establishment of an ESOS being obtained at the Extraordinary General Meeting (“EGM”) held on 6 August 2020 up to 10% of the total number of issued shares of the Company (excluding treasury shares) at any point in time over the duration of the ESOS for eligible persons at forthcoming EGM. On 1 July 2021, the Proposed ESOS has been approved by the majority of the shareholder during the EGM and it was resolved that approval be and is hereby given to the directors of the Company to authorise the ESOS Committee at any time and from time to time through the duration of the ESOS, to offer and grant to the following directors of the Company, ESOS options to subscribe for the ordinary shares of the Company under the ESOS:- (i) Dato’ Dr Norraesah Binti Haji Mohamad (ii) Wong Thean Soon (iii) Datuk Mohd Jimmy Wong Bin Abdullah (iv) Wong Kok Chau (v) Dato’ Sri Mohd Mokhtar Bin Mohd Shariff (q) On 22 June 2021, the Company proposed to undertake the establishment of a DRP that provides shareholders of the Company with an option to elect to reinvest their cash dividend declared by the Company into new ordinary shares in MYEG (“Proposed DRP”). Further on 2 July 2021, the Company had received a letter from Bursa Malaysia Securities Berhad to approve the listing of and quotation for up to 45,597,991 new MYEG shares to be issued pursuant to the Proposed DRP. Following the announcement on 22 July 2021, it was announced that the issue price of the new ordinary shares of the Company to be issued pursuant to the Proposed DRP has been fixed at RM1.65 per share. Subsequently on 9 September 2021, the Company has allotted and issued 18,380,084 new ordinary shares pursuant to the DRP. The new ordinary shares have been listed and quoted on the Main Market of Bursa Securities effective 10 September 2021, thus marking the completion of the DRP.

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