(For consistency purposes, the abbreviations and definitions used throughout this announcement shall have the same meanings as those previously defined in the Company’s announcement dated 3 February 2021 in relation to the Proposals.)

We refer to the earlier announcement in relation to the Proposals dated 3 February 2021.

On behalf of the Board, Mercury Securities wishes to announce that Bursa Securities had, vide its letter dated 19 February 2021, approved the following:-

(i)         Proposed Share Consolidation;

(ii)        listing and quotation of up to 237,406,330 Consolidated Shares (assuming all of the 369,329,241 outstanding Warrants E are exercised into new Sanichi Shares prior to the implementation of the Proposed Share Consolidation);

(iii)       listing and quotation of up to 36,932,924 consolidated Warrants E (assuming none of the outstanding Warrants E are exercised prior to the implementation of the Proposed Share Consolidation);

(iv)      admission to the Official List and listing and quotation of up to 712,218,990 Warrants F to be issued pursuant to the Proposed Rights Issue with Warrants;

(v)       listing and quotation of up to 1,424,437,980 Rights Shares to be issued pursuant to the Proposed Rights Issue with Warrants;

(vi)      listing and quotation of up to 712,218,990 new Sanichi Shares to be issued arising from the exercise of the Warrants F;

(vii)      listing and quotation of up to 63,303,779 additional Warrants E to be issued arising from the Adjustments (“Additional Warrants E”);

(viii)     listing and quotation of up to 63,303,779 new Sanichi Shares to be issued arising from the exercise of the Additional Warrants E; and

(ix)       listing and quotation of such number of new Sanichi Shares, representing up to 30% of the Company’s total number of issued Shares (excluding treasury shares, if any), to be issued pursuant to the Proposed New ESOS.

Sanichi or Mercury Securities is also required to make the relevant announcements pursuant to Rules 6.57(2) (ii) and (iii) of the Listing Requirements.

The approval by Bursa Securities for the Proposed Rights Issue with Warrants is subject to the following conditions:-

(i)         Sanichi and Mercury Securities must fully comply with the relevant provisions under the Listing Requirements pertaining to the implementation of the Proposed Rights Issue with Warrants;

(ii)         Sanichi and Mercury Securities to inform Bursa Securities upon the completion of the Proposed Rights Issue with Warrants;

(iii)        Sanichi to furnish Bursa Securities with a written confirmation of its compliance with the terms and conditions of Bursa Securities’ approval once the Proposed Rights Issue with Warrants is completed; and

(iv)        Sanichi to furnish Bursa Securities on a quarterly basis a summary of the total number of Shares listed pursuant to the exercise of the Warrants F as at the end of each quarter together with a detailed computation of listing fees payable.

The approval by Bursa Securities for the Proposed New ESOS is subject to the following conditions:-

(i)         Mercury Securities is required to submit a confirmation to Bursa Securities of full compliance of the Proposed New ESOS pursuant to Rule 6.44(1) of the Listing Requirements and stating the effective date of implementation;

(ii)         Mercury Securities is required to submit a certified true copy of the resolution passed by the shareholders in general meeting approving the Proposed New ESOS; and

(iii)        Sanichi is required to furnish Bursa Securities on a quarterly basis a summary of the total number of Shares listed pursuant to the Proposed New ESOS, as at the end of each quarter together with a detailed computation of listing fees payable.

In addition to the above, Mercury Securities wishes to announce that the Board has decided to revise its intention to fix the discount range for the issue price of the Rights Shares from between 0% and 50% to the TEAP of the Shares, to between 20% and 40% to the TEAP of the Shares. The Board has also decided to revise the discount range for the exercise price of the Warrants F from between 0% and 50% to the TEAP of the Shares, to between 10% and 30% to the TEAP of the Shares.

This announcement is dated 19 February 2021.