annual report 2014
I
Notes to the Financial Statements
31 December 2014 (Cont’d)
89
14. RESERVES (cont’d)
(d)
Warrant reserve
Warrant reserve represents the fair value assigned to the Warrants 2012/2015 and Warrant 2014/2017of
RM0.500 and RM0.731 respectively. The fair value was determined using the Black-Scholes-Merton option
pricing model.
On 23 January 2014, the Company issued 181,499,212 free detachable Warrants (Warrants 2014/2017) pursuant
to the Right Issue. Warrant 2014/2017 was constituted by Deed Poll dated 9 December 2013.
In accordance with the Deed Poll dated 15 March 2012, the holders of the existing Warrants 2012/2015 were
entitled to an adjustment to the exercise price and the number of warrants, which the warrants remained
unexercised as at 23 December 2013, pursuant to the Right Issue on 23 January 2014. Accordingly, an additional
19,779,602 of Warrants 2012/2015 was issued with a fair value of RM0.039 and an exercise price of RM0.35.
The warrant reserve would be transferred to the share premium account upon the exercise of warrants and
the warrant reserve in relation to the unexercised warrants at the expiry of the warrants would be transferred
to retained earnings.
The salient features of the Warrants 2012/2015 and Warrants 2014/2017 are as follows:
(i)
Each Warrant will entitle its registered holder during the exercise period to subscribe for one (1) new
ordinary share at the exercise price, subject to adjustment in accordance with the provision of the Deed
Poll;
(ii)
The exercise price of each warrant has been fixed at RM0.35, subject to adjustment under certain
circumstances in accordance with the provision of the Deed Poll; and
(iii)
The Warrants shall be exercisable at any time within a period of three (3) years including and commencing
from the issue date up to the expiry date.
As at 31 December 2014, unexercised warrants of the Company are as follows:
No. of
Exercise
warrants over
Warrant
Warrants
Date issued
price
ordinary shares
expiry date
RM
‘000
Warrants 2012/2015
26 April 2012
0.35
261,779
25 April 2015
Warrants 2014/2017
23 January 2014
0.35
181,500
22 January 2017
(e)
Treasury shares
On 26 August 2010, the Company repurchased 1,000 units of its issued shares from the open market at an
average price of RM0.48 per share. The repurchased shares were financed by internally generated fund. The
shares repurchased are being held as treasury shares.
