KUALA LUMPUR: MMAG Holdings Bhd will submit an application for a waiver from being classified as an affected listed issuer after it triggered the Guidance Note 3 (GN3) criteria.
In a filing with Bursa Malaysia Securities, the company said its external auditors expressed material uncertainty related to the going concern of the company in the audited financial statements for the financial year ended March 31, 2023.
In addition, it stated the shareholders' equity of the company on a consolidated basis is 50 per cent or less of its issued share capital calculated based on the unaudited financial results of the company as at June 30, 2024.
MMAG said it has undertaken and completed the rights issue on Jan 23, 2024, raising RM145.34 million.
It added warrants converted subsequent to January 2024 until to date has raised an additional RM92.09 million.
"Following the successful completion of the rights issue and the proceeds arising from the conversion of the warrants, the board of directors is of the view that the group's net assets has strengthened from RM170.62 million based on the audited financial statements for the financial year ended March 31, 2023 to RM220.77 million based on the unaudited financial results as at June 30, 2024.
"The group's cash position has also improved from RM13.03 million based on the audited financial statements for the financial year ended March 31, 2023 to RM78.86 million based on the unaudited financial results as at June 30, 2024," said the company.
It added net current assets (current assets have exceeded current liabilities) have also improved from a net current liabilities of RM56.87 million based on the audited financial statements for the financial year ended March 31, 2023 to a net current assets of RM39.46 million based on the unaudited financial results as at June 30, 2024.
"With these developments, the board of directors is confident of our financial stability moving forward. We will make the necessary announcement on further development in accordance with the requirements under the listing requirements."