We refer to the announcement made on behalf of XDL by AmInvestment Bank Berhad (a member of AmInvestment Bank Group) (“AmInvestment Bank”) on 9 December 2010 in relation to the Proposed Private Placement (“First Announcement”).
In the First Announcement, it was disclosed that gross proceeds of RM20.0 million will be raised assuming all the Placement Shares are placed out at RM0.50 each. Out of the RM20.0 million, RM19.7 million is expected to be used for working capital purposes while the remainder is expected to be used for defraying expenses in relation to the Proposed Private Placement.
Further to the First Announcement, AmInvestment Bank, on behalf of the Company, wishes to inform that the utilisation of the working capital comprises of, amongst others, purchases of inventory and consumables and processing charges for outsourced sports shoes.