Newsroom

Vitrox Corporation Berhad ("ViTrox" Or The "Company") Proposed Variation To Utilisation Of Proceeds Raised Through Vitrox's Initial Public Offering ("IPO")

BackDec 06, 2006

1. INTRODUCTION

On behalf of the Board of Directors of ViTrox ("Board"), Hwang-DBS Securities Berhad ("Hwang-DBS") wishes to announce that the Company proposes to undertake a variation to the utilisation of RM2.308 million in proceeds raised through ViTrox's IPO to working capital purposes and an extension of time thereof for the utilisation of the aforementioned amount by 31 December 2007 ("Proposed Variation").

2. DETAILS OF THE PROPOSED VARIATION

The Company's IPO, which was completed on 12 September 2005, raised total gross proceeds of RM10,560,000. As at 30 September 2006, the total gross proceeds raised by the Company of RM10,560,000 was utilised as follows:

	Note	Proposed	Actual	Balance
		RM'000	RM'000	RM'000
Purchase of R&D equipment	(i)	1,170	606	564
Regional offices set-up	(ii)	1,870	217	1,653
Repayment of financing of acquisition of land and the construction of three double-storey office-cum-factory buildings	(iii)	6,000	5,345*	655
Working capital	(iv)	220	220	-
Estimated listing expenses	(v)	1,300	1,300	-
		10,560	7,688	2,872

Note:
* Utilised amount includes a financing repayment of RM2.821 million on 17 November 2006, pursuant to which total bank borrowing pertaining to the financing of acquisition of land and the construction of three double storey office-cum-factory buildings has been fully settled for

The Company intends to vary the remaining balance of RM1.653 million and RM0.655 million from items (ii) and (iii), respectively of the balance unutilised proceeds to working capital, which are to be utilised by 31 December 2007. There is no change to the purpose and timeframe for the utilisation of the remaining proceeds from item (i) amounting to RM0.564 million, which will be utilised by the financial year ending 31 December 2007.

3. RATIONALE

The additional injection of working capital would serve to further strengthen the cashflow position of ViTrox.

4. FINANCIAL EFFECTS

The Proposed Variation will not result in any change to the issued and paid-up share capital of ViTrox as well as the shareholdings of the substantial shareholders and Directors of ViTrox, nor will they have any material financial effect on the earnings for the financial year ending 31 December 2006 and the net assets of the Group.

5. APPROVALS REQUIRED

The Proposed Variation is subject to the approval of the Securities Commission.

6. INTEREST OF DIRECTORS, SUBSTANTIAL SHAREHOLDERS AND PERSONS CONNECTED TO THEM

None of the Directors, substantial shareholders and persons connected to them, has any interest, direct or indirect, in the Proposed Variation.

7. DIRECTORS' STATEMENT

The Directors, having considered all aspects of the Proposed Variation, are of the opinion that the Proposed Variation is in the best interest of the Company.

8. ADVISER AND SPONSOR

Hwang-DBS has been appointed as the Adviser in relation to the Proposed Variation. Currently, Hwang-DBS is the Sponsor for ViTrox.

9. APPLICATION TO THE SECURITIES COMMISSION

Barring unforeseen circumstances, the application to the Securities Commission for the Proposed Variation is expected to be made within one (1) month from the date of this announcement.