On 28 May 2021, the Company announced that an application to appeal against the de-listing of EKA was submitted to Bursa Securities.

The Board of Directors (“Board”) of EKA wishes to announce that Bursa Securities has, vide its letter dated 09 July 2021, informed the Company that after due consideration of all facts and circumstances of the matter, has decided to:

(a) dismiss the Company's appeal for an extension of time until 31 December 2021 to submit its regularisation plan to the relevant authorities; and

(b) de-list the securities of the Company from the Official List of Bursa Securities pursuant to paragraph 8.04 of the Main LR.

In the circumstances, the securities of the Company will be removed from the Official List of Bursa Securities upon the expiry of two (2) market days from the date hereof, i.e. on 14 July 2021.

In arriving at the aforesaid decision, Bursa Securities has considered, amongst others, the following factors:

(a) There was no reasonable justification to allow a further extension of time particularly in view of the following:

1. The Company’s regularisation plan was dependent on the scheme of arrangement with creditors. However, the Company has yet to finalise and there was no certainty that the Company would be able to obtain the creditors’ approval on the scheme of arrangement where EKA had been unable to reach an agreement on the settlement sum with the creditors.

2. Notwithstanding the representations on the Company’s operational performance vis-a-vis the revenue and operating profits, and the efforts taken on the additional production lines incurred to increase the production capacity despite the limited working capital, there is lack of clarity/certainty of a regularisation plan to address the business of the Company and resolve all the problems, financial or otherwise that had caused EKA to trigger Practice Note 17 (“PN17”).

(b) Since the First Announcement on 30 August 2016, EKA has had approximately 4 years and 10 months to regularise the Company’s financial condition in accordance with paragraph 8.04 of the Main LR and PN17. 

(c) The financial information of EKA as set out in the Appendix of M&A Securities Sdn Bhd’s letter dated 30 April 2021, the audited financial statements for the financial year ended 31 December 2021 and the latest quarterly report for the financial period ended 31 March 2021.

(d) All PN17 companies are required to regularise their financial condition and level of operations expeditiously within the timeframes prescribed in paragraph 8.04 of the Main LR and PN17 or extended timeframe as may be granted by Bursa Securities.

(e) The requirement for companies to have an adequate level of financial condition serves to ensure that companies listed on the Official List are of a certain minimum quality as well as to preserve and sustain market integrity and investors’ confidence.

(f) In the opinion of Bursa Securities, adequate time and opportunity had been accorded to EKA to regularise the Company’s financial condition.

With respect to the securities of the Company which are currently deposited with Bursa Malaysia Depository Sdn Bhd (“Bursa Depository”), the securities may remain deposited with Bursa Depository notwithstanding the de-listing of the securities from the Official List of Bursa Securities. It is not mandatory for the securities of a company which has been de-listed to be withdrawn from Bursa Depository.

Alternatively, shareholders of the Company who intend to hold their securities in the form of physical certificates can withdraw these securities from their Central Depository System (CDS) accounts maintained with Bursa Depository at any time after the securities of the Company have been de-listed from the Official List of Bursa Securities. This can be effected by the shareholders submitting an application form for withdrawal in accordance with the procedures prescribed by Bursa Depository. These shareholders can contact any Participating Organisation of Bursa Securities and/or Bursa Securities’ General Line at 03-2034 7000 for further information on the withdrawal procedures.

Upon the de-listing of the Company, the Company will continue to exist but as an unlisted entity. The Company is still able to continue its operations and businesses and proceed with its corporate restructuring and its shareholders can still be rewarded by the Company's performance. However, shareholders will be holding shares which are no longer quoted and traded on Bursa Securities.

This announcement is dated 09 July 2021.