Asia Media Annual Report 2017

ASIA MEDIA GROUP BERHAD Annual Report 2017 116 16. Reserves (cont’d) (b) Warrant reserve The Warrants which are issued with the Rights Shares are immediately detached upon issuance and are separately traded. The Warrants are constituted by the deed poll dated 12 December 2012 (“Deed Poll”). Fair values from the issuance of Warrants are credited to warrant reserve which is non-distributable. In arriving at the related fair values, the fair values of the Rights Shares and Warrants were proportionately adjusted to the issue price of RM1.20 per Rights Shares. When the Warrants are exercised or expired, the warrant reserve will be reversed, to the extent that such exercise of warrants is of significant quantity. Salient features of the Warrants are as follows: (i) Each Warrant entitles the registered holder thereof (“Warrant holder(s)”) to subscribe for one (1) new ordinary share of RM1.00 each in the Company at the exercise price of RM1.50 during the 5-year period expiring on 29 December 2017 (“Exercise Period”), subject to the adjustments in accordance with the Deed Poll constituting the Warrants; (ii) At the expiry of the Exercise Period, any Warrant which has not been exercised shall automatically lapse and cease to be valid for any purpose; (iii) The new shares to be issued upon the exercise of the Warrants shall, upon issue and allotment, rank pari passu in all respects with the existing shares of the Company except that they will not be entitled to any dividends, rights, allotments and/or distributions declared by the Company, which entitlement date thereof precedes the allotment date of the new shares to be issued pursuant to the exercise of the Warrants; (iv) For purpose of trading on Main Market of Bursa Malaysia Securities Berhad (“Bursa Securities”), a board lot for the Warrants shall be one hundred (100) or such other number of units as may be prescribed by Bursa Securities from time to time; and (v) The Deed Poll and accordingly the Warrants are governed by and shall be construed in accordance with the laws and regulations of Malaysia. As of 29 December 2017, 82,404,283 warrants remained unexercised and expired. The expired warrants have been delisted on 2 January 2018. NOTES TO THE FINANCIAL STATEMENTS 31 DECEMBER 2017 (cont’d)