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FAQ 3.13

Methods of offering of securities

​3.13

Mr. A and Mr. B are the promoters of X Bhd, a corporation which is admitted to the ACE Market on 15 August 2009. As at 15 August 2009 –

​​

the issued and paid up ordinary share capital of X Bhd is RM500,000.00 consisting 500,000 ordinary shares of RM1.00 each; and

​​

both Mr. A and Mr. B hold in aggregate 300,000 ordinary shares of RM1.00 each representing 60% of the issued and paid up share capital of X Bhd.

(a)

Is there a moratorium imposed on the shareholdings of Mr. A and Mr. B?

Yes. Pursuant to Rule 3.19 of the ACE LR, a moratorium is imposed over the shareholdings of Mr. A and Mr. B in the following manner:

(i)

From 15 August 2009 until 14 February 2010 (6 months), a moratorium is imposed on the entire shareholdings of Mr. A and Mr. B amounting to 300,000 ordinary shares of RM1.00 each in X Bhd;

​​​​(ii)

From 15 February 2010 until 14 August 2010 (the following 6 months), a moratorium is imposed on the aggregate shareholdings of Mr. A and Mr. B amounting to 225,000 ordinary shares of RM1.00 each in X Bhd which represents 45% of X Bhd’s issued and paid up capital;

​​​​(iii)

After 14 August 2010, Mr. A and Mr. B may sell up to a maximum of 1/3rd per annum (on straight line basis) of the 225,000 ordinary shares held under moratorium provided that X Bhd has generated 1 full financial year of operating revenue based on its latest audited financial statements.

​(b)If, after 14 August 2010, X Bhd is unable to generate 1 full financial year of operating revenue based on its latest audited financial statements, can Mr. A and Mr. B sell their 225,000 ordinary shares in X Bhd held under moratorium?
​ ​No, the moratorium over their 225,000 ordinary shares in X Bhd must remain. Mr. A and Mr. B may only sell their 225,000 ordinary shares in X Bhd up to a maximum of 1/3rd per annum (on straight line basis) after X Bhd has generated 1 full financial year of operating revenue based on its latest audited financial statements.