Serba Dinamik Annual Report 2021

Registration No: 201501042584 (1167905-P) Serba Dinamik Holdings Berhad (Incorporated in Malaysia) 3 Treasury shares Treasury shares relate to ordinary shares of the Company that are repurchased and held by the Company in accordance with the requirement of Section 127 of the Companies Act 2016 in Malaysia. During the financial period, the Company has made several transactions as follows: (a) In March 2020, the Company made a multiple repurchased transaction of shares totalling to 18,779,000 shares from its issued share capital in the open market at a range of average price RM1.27 to RM1.97 per share. The total consideration paid was RM31,865,817. The repurchase transactions were financed by internally generated funds. (b) In October and November 2020, the Company made a multiple repurchased transaction of shares totalling to 3,283,800 shares from its issued share capital in the open market at a range of average price RM1.50 to RM1.60 per share. The total consideration paid was RM5,020,880. The repurchase transactions were financed by internally generated funds. (c) On 4 December 2020, the Company resold its share totalling to 4,500,000 shares from its repurchased share capital in the open market at a range of average price of RM1.84 to RM1.90 per share. The total consideration received was RM8,384,798. The shares resale are offsetted against the existing treasury shares. The shares repurchased are retained as treasury shares and the shares resale are offsetted against the existing treasury shares. As at 30 June 2021, the Company held 17,562,800 shares out of its 3,727,186,878 issued and paid-up ordinary shares. Such treasury shares are held at a carrying amount of RM28,501,899. Issue of warrants The issuance of 881,099,921 free warrants on the basis of two warrants for every five subdivided shares had been completed on 13 December 2019 following the listing and quotation of the warrants on the Main Market of Bursa Securities. The warrants are constituted by the Deed Poll dated 19 November 2019. The main features of the warrants are as follows: (a) The warrants may exercise at any time until the end of the tenure of the warrants of five (5) years. Any warrants not exercised during the exercise period will thereafter lapse and cease to be valid for any purpose. (b) Each warrant entitles the holder of the warrants at any time during the exercise period subscribe for one (1) new ordinary share in the Company at the exercise price subject to the adjustments in accordance with the Deed Poll constituting the warrants. (c) The warrants do not entitle the holder of the warrants to any voting rights or to participate in any distribution or offer of securities in the Company until and unless the holder of the warrants exercise their warrants into the Company’s new shares. (d) The Deed Poll and accordingly the warrants are governed by and shall be construed in accordance with the laws of Malaysia. No warrants were exercised during the financial period. As at period end, 881,099,921 warrants remained unexercised.