(The abbreviations used throughout this announcement shall have the same meaning as defined in the announcement dated 6 October 2020 in relation to the Proposed Debt Restructuring and Proposed Corporate Restructuring (“Initial Announcement”), unless stated otherwise or defined herein.)

With reference to the Initial Announcement wherein the Company is proposing to undertake the Proposed Debt Restructuring and Proposed Corporate Restructuring, it was made known that the Group intends to raise up to RM500 million, which include raising funds from equity providers in order to reset the airline.

Accordingly, on behalf of the Board, Mercury Securities Sdn Bhd wishes to announce that the Company proposes to undertake the following:-

(i)         a proposed renounceable rights issue of new ordinary shares in AAX (“AAX Shares” or “Shares”) to raise gross proceeds of up to RM300 million (“Proposed Rights Issue”); and

(ii)         a proposed issuance and allotment of new AAX Shares by way of:-

(a)        subscription by a special purpose vehicle company incorporated by Dato’ Lim Kian Onn (“SPV”) directly and/or its associates and/or other placees of up to RM200 million Shares. The SPV will commit a minimum subscription of RM50 million, subject to terms and conditions of a share subscription agreement to be entered into (“Share Subscription Agreement”); and

(b)        an option for the SPV to subscribe for additional 15% of the enlarged total number of AAX Shares after the Proposed Rights Issue and proposed share subscription above. The option becomes effective when the Share Subscription Agreement becomes unconditional (including amongst others completion of the Proposed Rights Issue).

(Collectively, (a) and (b) are referred to as the “Proposed Share Subscription”).

(The Proposed Rights Issue and the Proposed Share Subscription are collectively referred to as the “Proposed Fundraising”).

The details of the Proposed Fundraising are set out in the attachment.

This announcement is dated 14 December 2020.