Reference is made to the proposed utilisation of proceeds raised from the private placement of 129,357,000 new ordinary shares of PNE ("Private Placement") allocated for the capital expenditure for the Glove Business. The Company had raised total gross proceeds of RM10.93 million from the Private Placement ("Private Placement Proceeds").
To date, the Company has yet to fully utilise the Private Placement Proceeds, given the decline in the global average selling prices (“ASP”) of hand gloves over the past year and the decision to put on hold the evaluation of the glove business. As at the date of this announcement, the global glove industry continues to face challenging market conditions characterised by oversupply and subdued ASPs, although gradual recovery in demand is anticipated in 2025 based on projections by the Malaysian Rubber Glove Manufacturers Association (“MARGMA”).
In view of the prevailing market uncertainties, the Board wishes to extend the timeframe for the utilisation of the remaining Private Placement Proceeds for a further twelve (12) months to allow sufficient time for reassessment and strategic planning.
During the extended period, the Board will continue to monitor developments in both global and domestic glove markets, including trends in demand, ASP, and production costs. The Company will focus on assessing current industry conditions, engaging with potential partners or technology providers, and exploring alternative business models or diversification opportunities that could enhance long-term returns.
A summary of the revised utilisation of Proceeds is set out below:
|
Description
|
Proposed Utilisation
RM’000
|
Actual Utilisation RM’000
|
Unutilised proceed
RM’000
|
Initial Time Frame for Utilisation
|
Previously Revised Time Frame for Utilisation
|
Further Extension of Time for Utilisation
|
|
Capital expenditure for the Gloves Business
|
10,500
|
0
|
10,500
|
Within 24 months
|
Within 12 months
|
Within 12 months
|
|
Estimated expenses for the Private Placement 30%
|
430
|
430
|
0
|
Immediate
|
-
|
-
|
|
Total
|
10,930
|
430
|
10,500
|
-
|
-
|
-
|
The Board is of the opinion that the Extension of Time is in the best interest of the Company. The Extension of Time is not subject to any regularly authorities or shareholders' approval.
Nonetheless, the Company shall continue to be vigilant and prudent in managing the Private Placement Proceeds and will continue to disclose the status of the utilisation in the Company's quarterly results and annual report until it is fully utilised.
This announcement is dated 5 November 2025.