We, Hock Heng Stone Industries Bhd. (“HOCK HENG” or “the Company”) refer to the utilisation of proceeds raised from the public issue as disclosed in the Company’s Prospectus dated 9 March 2010 that was issued in conjunction with the listing of the Company on the Main Market of Bursa Malaysia Securities Berhad (“IPO”).
The Board of Directors of HOCK HENG (“the Board”) wishes to announce that the Board had resolved to vary the proposed utilisation of proceeds of RM2.12 million which was allocated for the operation of the quarry in Tangkak, Johor to working capital of the Company and its subsidiaries (“the Group”). In addition, the Board had also resolved to extend the timeframe for the said utlisation of the revised proceeds for another twelve (12) months period until 25 September 2012.
Details of the utilisation of proceeds as at 30 November 2011 are reflected in the Table A.
The revision is mainly due to the Management of HOCK HENG is of the view that it is not appropriate to commence the operation of the quarry which subsequently require substantial working cash flow due to uncertainty in global economy and customers’ demand. The revision would not significantly affect the business of the Group in view that the raw stones are widely available from a varied base of local and overseas suppliers and the Group is not overly dependent on raw stones sourced from any particular quarries.
The Board is of the opinion that the relocation of the proceeds to working capital requirements of the Group and the extension of time for utilisation until 25 September 2012 would be in the best interest of HOCK HENG.
The Board wishes to inform that no approval is required from the Securities Commission or any other relevant authorities pertaining to the variation of utilisation and the extension of timeframe for utilisation of proceeds.
This announcement is dated 27 December 2011.
Hock Heng-Table A.pdf16 KB