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OTHERS MCOM HOLDINGS BERHAD (MCOM OR THE COMPANY) EXTENSION OF TIME FOR THE UTILISATION OF PROCEEDS FROM THE EXCLUDED ISSUE

MCOM HOLDINGS BERHAD

Type Announcement
Subject OTHERS
Description
MCOM HOLDINGS BERHAD (MCOM OR THE COMPANY)
EXTENSION OF TIME FOR THE UTILISATION OF PROCEEDS FROM THE EXCLUDED ISSUE

Unless otherwise stated, the abbreviations and definitions used throughout this announcement shall have the same meanings as those previously defined in the Company’s Information Memorandum dated 23 January 2019 (“InfoMemo”).

 

INTRODUCTION

 

As disclosed in Section 2.5 of the InfoMemo in relation to the listing of MCOM Holdings Berhad (“MCOM” or “Company”) on the LEAP Market of Bursa Malaysia Securities Berhad (“Bursa Securities”) on 3 July 2019 (“Listing”), the Company has raised gross proceeds of RM5.28 million (“Listing Proceeds”).

 

The Board of Directors of MCOM (“Board”) wishes to announce that MCOM has decided to extend the timeframe for the use of proceeds raised from the Listing (“EOT”).

 

DETAILS OF THE EOT

 

As at 31 March 2021, MCOM has used RM4.3 million of the Listing Proceeds and has yet to use the remaining balance of RM0.98 million from the Listing Proceeds. The details of EOT are as follows:

 

Purpose of use Proposed Utilisation RM’000

Actual Utilisation RM’000

Re-allocation(1) RM’000

Balance RM’000

Previous extended timeframe for utilization(2)

Further Extended Timeframe for utilisation

Capital expenditure for internet service provision 2,900 (2,015) - 885 By 2 July 2021 By 1 July 2022
Capital expenditure for mobile advertising platform 880 (755) (33) 92 By 2 July 2021 By 1 July 2022
Listing expenses 1,500 (1,533) 33 - Utilised -
Total estimated proceeds

5,280 

(4,303) - 977 - -

 

Note:

 

(1) As stated in Information Memorandum of the Company dated 23 January 2019, any shortfall or excess from listing expenses of RM1.50 million will be reallocated from/to the amount allocated for capital expenditure for mobile advertising platform.

 

(2) On 29 June 2020, the Company announced the decision to extend the timeframe for the use of proceeds raised from the placement for an additional 12 months (i.e. by 2 July 2021).  In view of the global business disruption caused by the COVID-19 pandemic, the Company expects a potential delay in setting up essential facilities in Cambodia to offer wired and wireless internet services as well as the expansion plan for mobile advertising platform due to the lockdown imposed in Cambodia and Malaysia. The lockdown has delayed the upgrade and installation works to be carried out at the respective location.

 

RATIONALE FOR THE EOT

 

In view of the global business disruption caused by the COVID-19 pandemic, the Board expects a potential delay in setting up essential facilities in Cambodia to offer wired and wireless internet service as well as the expansion plan for mobile advertising platform due to the lockdown imposed in Cambodia and Malaysia. The lockdown has prevented the upgrade and installation works to be carried out at the respective location. Therefore, the Board has decided to extend the timeframe to use the remaining balance of RM0.98 million from the Listing Proceeds for an additional 12 months (i.e. by 1 July 2022).        

                              

APPROVALS REQUIRED

 

The EOT is not subject to any approvals from Bursa Securities or shareholders of the Company. The Board shall continue to be vigilant and prudent in managing the remaining Listing Proceeds and will continue to disclose the status of the utilisation of the remaining Listing Proceeds in the Company’s half yearly report on consolidated results until its full utilisation.

 

This announcement is dated 20 September 2021.






Announcement Info

Company Name MCOM HOLDINGS BERHAD
Stock Name MCOM
Date Announced 20 Sep 2021
Category General Announcement for PLC
Reference Number GA1-20092021-00054




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