(For consistency, the abbreviations used throughout this announcement shall have the same meanings as defined in the announcement dated 6 December 2019 in relation to the Rights Issue with Warrants, where applicable, unless stated otherwise or defined herein.)
The Board of Directors of Vsolar (Board) wishes to inform that as at 1 June 2023, the Company has yet to fully utilise the proceeds raised from the Rights Issue with Warrants and the Board requires additional time to utilise the balance proceeds amounting to approximately RM36.125 million for the capital expenditure for development and construction of biomass/biogas plants (biomass/biogas plants) (Extension of Time).
The Board has resolved to extend the time frame for the utilisation of the said proceeds for another twelve (12) months period from 12 July 2023 to 12 July 2024 (Revised Time Frame) to provide additional time for the Group to utilise the balance of proceeds on the biomass/biogas plants. The details of the Revised Time Frame are as follows:
| Description |
Proposed Utilisation
RM'000
|
Actual Utilisation
RM'000
|
Balance Unutilised Proceeds
RM'000
|
Timeframe for Utilisation from the Receipt of Proceeds from the Date of Listing, i.e. 13 July 2020
(unless otherwise stated) |
Intended Time Frame for Utilisation |
Proposed Revised Time Frame |
| Capital expenditure for development and construction of biomass/biogas plants |
34,085 |
- |
34,085 |
Between 12 months to 36 months
|
12 July 2023 |
12 July 2024 |
| Additional working capital for the operations of the biomass/biogas plants |
2,040 |
- |
2,040 |
Within 36 months from the completion of the construction of biomass/biogas plants |
- |
- |
| Estimated expenses for the Rights Issue with Warrants |
850 |
(850) |
- |
Within 1 month |
- |
- |
| Total |
36,975 |
(850) |
36,125 |
- |
- |
- |
The Revised Time Frame does not require the approval of any regulatory authorities or the shareholders of Vsolar.
The Board, having considered all aspects of the proposed Extension of Time, is of the opinion that it will not have material adverse effect on the financial performance of the Group and is in the best interest of the Group.
The Company shall continue to be vigilant and prudent in managing the remaining proceeds raised from the Rights Issue with Warrants and will continue to disclose the status of the utilisation in the Company's quarterly results and annual reports until it is fully utilised.
This announcement is dated 1 June 2023.