Reference is made to the proposed utilisation of proceeds raised from the private placement of 129,357,000 new ordinary shares of PNE ("Private Placement") allocated for the capital expenditure for the Glove Business. The Company had raised a total gross proceeds of RM10.93 million from the Private Placement ("Private Placement Proceeds").
To-date, the Company has yet to fully utilise the Private Placement Proceeds due to decline in the global average selling price of hand gloves over the past year and the Company has put on hold to re-evaluate the feasibility of the gloves business. The Company wishes to announce that the Board of Directors of PNE has resolved to extend the timeframe for the utilisation of proceeds for the capital expenditure for the Gloves Business ("Extenstion of Time").
A summary of the revised utilisation of Private Placement Proceeds is set out below:
Description
|
Proposed Utilisation
RM’000
|
Actual Utilisation RM’000
|
Unutilised proceed
RM’000
|
Initial Time Frame for Utilisation
|
Previously Revised Time Frame for Utilisation
|
Further Extension of Time for Utilisation
|
Capital expenditure for the Gloves Business
|
10,500
|
0
|
10,500
|
Within 24 months
|
Within 12 months
|
Within 12 months
|
Estimated expenses for the Private Placement 30%
|
430
|
430
|
0
|
Immediate
|
-
|
-
|
Total
|
10,930
|
430
|
10,500
|
-
|
-
|
-
|
The Board is of the opinion that the Extension of Time is in the best interest of the Company. The Extension of Time is not subject to any regularly authorities or shareholders' approval.
Nonetheless, the Company shall continue to be vigilant and prudent in managing the Private Placement Proceeds and will continue to disclose the status of the utilisation in the Company's quarterly results and annual report until it is fully utilised.
This announcement is dated 1 November 2023.