(For consistency, the abbreviations used throughout this announcement shall have the same meanings as defined in the announcements dated 6 October 2020 and 14 December 2020, where applicable, unless stated otherwise or defined herein.)

Reference is made to the earlier announcements in relation to the Proposed Rights Issue.

On behalf of the Board, Mercury Securities wishes to announce that the Board has resolved to fix the following:-

(i)         entitlement basis for the Proposed Rights Issue of 1 Rights Share for every 1 existing Share held by the Entitled Shareholders on an entitlement date to be announced; and

(ii)         Rights Issue Price of RM0.28.

The Board had fixed the Rights Issue Price at RM0.28 after taking into consideration, amongst others, the following:-

(i)         the funding requirements of the Group, as set out in Section 5 of the circular to shareholders of the Company dated 10 May 2021 (“Circular”);

(ii)         the prevailing market prices of the Shares;

(iii)        the TEAP of the Shares based on the 5-day volume weighted average market price (“VWAP”) of the Shares up to and including 18 February 2022, being the last trading day prior to the date of fixing the Rights Issue Price (“LTD”); and

(iv)        the rationale for the Proposed Rights Issue, as set out in Section 6 of the Circular.

The Rights Issue Price of RM0.28 represents a discount of approximately 32.66% to the TEAP of the Shares of approximately RM0.4158, calculated based on the 5-day VWAP of the Shares up to and including the LTD of RM0.5515.

Based on the Rights Issue Price and the entitlement basis fixed, the Proposed Rights Issue will raise an amount of up to approximately RM116 million whilst a further RM50 million is expected to be raised from the Proposed Share Subscription via the subscription by the SPV. This amount of RM166 million to be raised from the Proposed Fundraising is to be channelled mainly towards the Group's working capital requirements.

This announcement is dated 21 February 2022.