The Board of Directors of AAX wishes to announce that the Company has triggered the following prescribed criteria set out in Paragraph 8.04 and Paragraph 2.1(a) and 2.1(e) of Practice Note 17 (“PN17”) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (“Main LR”):-

1. AAX’s shareholders’ equity on a consolidated basis is 25% or less of its share capital (excluding treasury shares) and such shareholders’ equity is less than RM40 million in respect of AAX’s unaudited first quarterly results for the financial period ended 31 March 2020; and
2. AAX’s external auditors, Messrs Ernst & Young PLT, have issued an unmodified audit opinion with emphasis of matter on material uncertainty relating to going concern (“MUGC”) in respect of AAX’s audited financial statements for the financial year ended 31 December 2019 and AAX’s shareholders’ equity on a consolidated basis is 50% or less of its share capital (excluding treasury shares).

Bursa Securities had via its letter dated 16 April 2020 granted affected listed issuers relief from complying with the obligations under Paragraph 8.04 and PN17 of the Main LR (“PN17 Relief Measures”) from 17 April 2020 to 30 June 2021 (“Relief Period”). The PN17 Relief Measures will be available to the listed issuer if it triggers any one of the following criteria under PN17 of the Main LR (“Suspended Criteria”):-

1. its shareholders’ equity on a consolidated basis is 25% or less of its share capital (excluding treasury shares) and such shareholders’ equity is less than RM40 million;
2. the auditors have highlighted a MUGC or expressed a qualification on the listed issuer’s ability to continue as a going concern in its latest audited financial statements and its shareholders’ equity on a consolidated basis is 50% or less of its share capital (excluding treasury shares); and
3. default in payment by the listed issuer, its major subsidiary or major associated company, as the case may be, as announced pursuant to paragraph 9.19A of the Main LR and the listed issuer is unable to provide a solvency declaration to Bursa Securities.

Under the PN17 Relief Measures:-

1. an affected listed issuer that triggers any of the Suspended Criteria during the Relief Period will not be classified as a PN17 listed issuer and will not be required to comply with the obligations pursuant to Paragraph 8.04 and PN17 of the Main LR for a period of 12 months from the date of triggering the criteria;
2. the affected listed issuer will still be required to make an immediate announcement that it has triggered the Suspended Criteria and the relief provided (“Relief Announcement”);
3. upon the expiry of the 12 months from the Relief Announcement, the affected listed issuer must re-assess its condition and announce whether it continues to trigger any of the criteria in PN17 of the Main LR (“said Announcement”); and
4. if the affected listed issuer continues to trigger any of the criteria in PN17 of the Main LR, it will then be classified as a PN17 listed issuer and must comply with all the obligations under Paragraph 8.04 and PN17 of the Main LR, including the obligation to submit a regularisation plan to the relevant authorities within 12 months from the said Announcement.

For the avoidance of doubt, AAX will not be classified as a PN17 listed issuer and will not be required to comply with the obligations pursuant to Paragraph 8.04 and PN17 of the Main LR for a period of 12 months from the date of this announcement. AAX will re-assess its condition and announce whether it continues to trigger any of the prescribed criteria in PN17 of the Main LR upon the expiry of the 12 months from the date of this announcement.

This announcement is dated 30 July 2020.