1.       INTRODUCTION

Pursuant to Paragraph 8.04 and Paragraph 2.1 (a) of Practice Note 17 (“PN17”) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Securities”), the Board of Directors of EKA Noodles Berhad (“EKA” or “the Company”) wishes to announce that EKA is an affected listed issuer (“PN17 Company”) as it has triggered Paragraph 2.1 (a) of PN17 as EKA’s shareholders’ equity on a consolidated basis is 25% or less of the issued and paid-up capital of EKA and such shareholders’ equity is less than RM40.0 million in EKA’s unaudited interim financial results for the 2nd quarter ended 30 June 2016.

2.       OBLIGATIONS AS PN17 COMPANY

Pursuant to PN17, the Company is required to comply with the following:

(i)      within 12 months from the date of this announcement (“First Announcement”):-

(a)     submit a regularisation plan to the Securities Commission (“SC”) if the plan will result in a significant change in the business direction or policy of the Company; or

(b)     submit a regularisation plan to Bursa Securities if the plan will not result in a significant change in the business direction or policy of the Company, and obtain Bursa Securities’ approval to implement the plan;

(ii)     implement the regularisation plan within the timeframe stipulated by the SC or Bursa Securities, as the case may be;

(iii)    announce within 3 months from this First Announcement, on whether the regularisation plan will result in a significant change in the business direction or policy of the Company;

(iv)    announce the status of its regularisation plan and the number of months to the end of the relevant timeframes referred to in Paragraphs 5.1 and 5.2 of PN17, as may be applicable, on a monthly basis until further notice from Bursa Securities;

(v)     announce its compliance or non-compliance with a particular obligation imposed pursuant to PN17, on an immediate basis;

(vi)    announce the details of the regularisation plan (“Requisite Announcement”) and sufficient information to demonstrate that the Company is able to comply with all the requirements set out in Paragraph 5.4 of PN17 after implementation of the regularisation plan, which shall include a timeline for the complete implementation of the regularisation plan. The Requisite Announcement must be made by the Company’s Principal Adviser; and

(vii)   where the Company fails to regularise its condition, it will announce the dates of suspension and de-listing of its listed securities, immediately upon notification of suspension and de-listing by Bursa Securities.

3.         CONSEQUENCE OF NON-COMPLIANCE

In the event the EKA fails to comply with the obligations to regularise its condition, all its listed securities will be suspended from trading on the 6th market day after the date of notification of suspension by Bursa Securities and de-listing procedures shall be taken against EKA, subject to EKA’s right to appeal against the de-listing.

4.         STATUS OF PLAN TO REGULARISE CONDITION

EKA is looking into formulating a regularisation plan to address its PN17 status and will make the necessary announcement on the regularization plan in due course.

This announcement is dated 30 August 2016.