Further to the announcements dated 8 August 2017, 3 October 2017 and 8 January 2018, M&A Securities Sdn Bhd, on behalf of the Company wishes to announce that the Company had on 27 February 2018, entered into a conditional share purchase agreement (“SPA”) with Loo Seng Pang, Tai Poh Yak, Ang Eng Hooi, Phnuah Farn Farn, Ang Jin Mao and Dato’ Seri Mr Serm Juthamongkhon (collectively, the “Vendors”) to acquire the entire issued share capital in Kepala Batas Bihun Sdn Bhd (“KBB”) comprising 5,500,002 ordinary shares in KBB for a purchase consideration of RM55,000,000 to be satisfied in part by cash payment of RM33.0 million and RM22.0 million via the issuance of 440,000,000 EKA Shares (“Consideration Shares”) to the Vendors and/or their nominees at an issue price of RM0.05 per ordinary share in EKA (“Proposed Acquisition”).

The Proposed Acquisition is a component of a series of proposals set out in the SPA, to regularise the financial condition of EKA (i.e. the “Proposed Regularisation Plan”), with the intention of restoring EKA onto a stronger financial footing.

Pursuant thereto, the Proposed Regularisation Plan shall comprise the following:-

(a) Proposed Capital Reconstruction;

(b) Proposed Debt Restructuring Scheme;

(c) Proposed Rights Issue with Warrants; and

(d) Proposed Acquisition.

Further details of the Proposed Regularisation Plan are set out in the attachment below.

This announcement is dated 27 February 2018.