We refer to the Company’s announcements dated 9 October 2017, 18 July 2018, 27 July 2018, 24 October 2018, 21 November 2018, 12 December 2018, 18 December 2018 and 20 December 2018 in relation to the Rights Issue of Shares with Warrants (“Announcements”). Unless otherwise defined, the definitions set out in the Announcements shall apply herein.

The Board of Directors of Sanichi (“Board”) wishes to announce that as at the expiry date of the timeframe to utilise the proceeds from the Rights Issue with Warrants, the Company has yet to fully utilise the balance proceeds amounting to RM18.461 million for property development activities.

The Board after having deliberated on the domestic economic challenges faced by the Company due to the prolonged COVID-19 pandemic in Malaysia, resolved to extend the timeframe for the utilisation of the balance proceeds from the Rights Issue with Warrants, details as follows:

The Board is of the opinion that the extension of timeframe is in the best interest of the Group and will not have material adverse effect on the financial performance of the Group.

The revised timeframe does not require the approval of any regulatory authorities or shareholders of the Company.

The Company shall continue to be vigilant and prudent in managing the remaining proceeds raised from issuance of 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.