Reference is made to the proposed utilisation of proceeds raised from the proposed private placement of new ordinary shares of up to 20% of the total number of issued shares of the Company ("20% Private Placement") and completed the issuance and allotment of 71,156,000 new ordinary shares ("Shares") at an issue price of RM0.2208 per Share on 5 March 2021. The Company had raised a total proceeds of RM15.711 million from the 20% Private Placement ("Private Placement Proceeds").
To-date, the Company has yet to fully utilise the Private Placement Proceeds due to the slowdown in the customers demand caused by the global market condition. 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 upgrading of the existing PCB production lines for another 12 months period until 5 March 2025 ("Extenstion of Time").
The remaining balance of the Private Placement Proceeds will be utilised to upgrade existing PCB production lines, provided that market conditions have rebounded and customer orders have returned to levels seen before the pandemic or surpassed them. The Board will closely monitor the market conditions to determine whether to proceed with the upgrades before taking further action.
A summary of the revised utilisation of 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
|
Revised Time Frame
|
Repayment of borrowings
|
10,443
|
10,443
|
0
|
Within 12 months
|
-
|
-
|
Upgrading of existing PCB production lines
|
5,084
|
202
|
4,882
|
Within 24 months
|
Within 12 months
|
Within 12 months
|
Estimated expenses for the Private Placement 20%
|
184
|
184
|
0
|
Immediate
|
-
|
-
|
Total
|
15,711
|
10,829
|
4,882
|
-
|
-
|
-
|
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 4 March 2024.