1. Introduction
Reference is made to the prospectus of Sunzen dated 12 September 2008 ( Prospectus ) in relation to its listing on the ACE Market (then MESDAQ) of Bursa Malaysia Securities Berhad and the proposed utilisation of proceeds raised from the IPO.
2. Proposed extension of time for the utilisation of proceeds raised from the IPO
As at 31March 2011, the details of the utilisation of the proceeds are as follows:
|
Proposed utilisation (RM000) |
Actual utilisation (RM000) |
Balance as at 31 March 2011 (RM000) | Intended timeframe for utilisation from the listing date as disclosed in the Prospectus(2) (Months) |
Research and development ( R&D ) | 4,770 | 1,396 | 3,374 | 36 |
Overseas expansion | 1,000 | 1,000 | - | 48 |
Working capital | 430 | 250 | 180 | 24 |
Estimated listing expenses | 1,800 | 1,980 | (180)(1) | 3 |
Total | 8,000 | 4,626 |
3,374 |
|
Notes:
(1) The actual listing expenses was higher than estimated, the excess amount had been recovered from the partial portion of working capital.
(2) Sunzen was listed on 8 October 2008.
The Board of Directors of Sunzen ( Board ) had on 26 May 2011 resolved to approve the extension of time for the utilisation of the balance proceeds of RM3.374 million for the R&D until 8 October 2012.
3. Rationale for the proposed extension of time
In view of the existing progress of R&D activities of the Group, the Board foresees that the utilisation of the balance proceeds of RM3.374 million would only be fully ultilised by 8 October 2012.
This announcement is dated 26 May 2011.