Reference is made to the details on the utilisation of proceeds raised from
the rights issue of shares with warrants as disclosed in the Abridged Prospectus
of SerSol dated 29 March 2013.
As as to-date, the Company has yet to fully utilise the proceeds. The
Board of Directors (the Board) of SerSol has resolved to extend the time
frame for the utilisation of the remaining unutilised amount of RM407,000 earmarked
for the purchase of plant and machinery for another twelve (12) months period
until 28 October 2015.
The status of utilisation of the proceeds from the rights issue of
shares with warrants as at 30 September 2014 is as follows:
|
Purpose
|
Proceeds
raised
RM000
|
Actual
Utilisation
RM000
|
Balance
Unutilised
RM000
|
Intended
Timeframe of Utilisation
|
i)
|
Research & development
|
900
|
900
|
-
|
-
|
ii)
|
Purchase of plant & machinery
|
500
|
93
|
407
|
28 October 2015
|
iii)
|
Repayment of bank borrowings
|
2,500
|
2,500
|
-
|
-
|
iv)
|
Working capital
|
5,235
|
5,235
|
-
|
-
|
v)
|
Defray estimated expenses
|
500
|
500
|
-
|
-
|
|
|
9,635
|
9,228
|
|
|
All the proceeds under item (i), (iii), (iv) and (v) above have been
fully utilised within the original time frame.
The Company is currently in the process of identifying suitable
plant and machinery before any acquisition is made.
The Board is of the opinion that the extension of time
for the utilisation of proceeds is in the best interest of SerSol.
The Board wishes to inform that no approval is required
from any relevant authorities pertaining to the extension of time.
This announcement is dated 28 October 2014.