AwanBiru Technology Berhad - Annual Report 2021

Other Corporate Exercises During the financial year, the Company increased its issued and paid-up share capital from RM133,802,983 to RM176,672,151 by way of: a) a private placement of 79,579,740 new ordinary shares at an issue price of RM0.35 each, together with 79,579,740 free warrants for a cash consideration of RM18,874,510 (after net of transaction costs of RM137,090 and allocation of RM8,841,309 to warrant reserve); b) an issuance of 176,842,127 new ordinary shares pursuant to the right issues with warrants at RM0.20 each, together with 79,579,740 free warrants for a total cash consideration RM23,783,571 (after net of transaction costs of RM355,379 and with allocation of RM11,229,475 to warrant reserve); and c) an issuance of 471,633 new ordinary shares for a total cash consideration of RM181,579 at an issue price of RM0.385 each from warrants conversion, with transfer of RM29,508 from warrant reserve. The Employees’ Share Option Scheme of the Company The Employees’ Share Option Scheme of the Company (“ ESOS ”) is governed by the ESOS By-Laws and was approved by shareholders on 15 September 2020. The ESOS is to be in force for a period of 5 years effective from 25 January 2021. We are happy to offer this ESOS to our employees. They have demonstrated the highest level of commitment and loyalty in serving our stakeholders throughout the years, and in return, we offer them with an opportunity for equity participation to enable our employees to capitalise on Awantec’s growth. ESG Efforts In light of the changes in its suite of services, Awantec has reviewed its material sustainability plans and strategies to ascertain their relevance and the manner in which they are measured. In addition, Awantec had to adapt its strategies and operations to meet challenges stemming from COVID 19 pandemic to ensure the sustainability of its business and the safety of its employees. Measures such as using virtual meeting tools to collaborate or hold meetings, implementing social distancing measures in the office and moving physical training classes to virtual learning platforms, were introduced to cushion the impact of the pandemic. Details of our sustainability activities can be found at page 39 to 78 of this report. Value Creation Opportunities Alignment to MyDIGITAL BLUEPRINT MyDIGITAL has set the tone and direction of Malaysia’s digital economy. It is formulated as the action plan and outlines the efforts and initiatives which will be implemented up to 2030. This blueprint envisions Malaysia as the regional lead in digital economy with inclusive, responsible and sustainable socio- economic development. Its three objectives are to encourage industry players to become creators, users and adopters of innovative business models, harness human capital to thrive in the digital economy and nurture an integrated ecosystem that allows society to embrace digital economy. Awantec complements two of its six strategic thrusts, which drives digital transformation in the public sector, boosts economic competitiveness through digitalisation, builds enabling digital infrastructure along with agile and competent digital talent, creates an inclusive digital society, and builds trusted, secure, and ethical digital environment. These strategic thrusts are supported by 22 strategies, 48 national initiatives and 28 sectoral initiatives. The implementation of MyDIGITAL is divided into three phases. Phase 1 starts from 2021 to 2022 which will strengthen the foundation of digital adoption. Phase 2 which covers 2023 to 2025 which will drive inclusive digital transformation and Phase 3 which covers from 2026 to 2030 which will enable Malaysia to become a lead in digital content and cyber security for the regional market. MyDIGITAL is designed to complement national development policies such as the Twelfth Malaysia Plan (“ RMKe-12 ”) and Wawasan Kemakmuran Bersama 2030 (“ WKB 2030 ”). Digital economy was identified as a key economic growth area (“ KEGA ”) in realising WKB 2030. Awantec’s solutions contribute towards the Governments goals of making Malaysia a country which is developing sustainably with fair economic distribution as well as equitable and inclusive growth. Awantec’s core services contribute to T1 – driving digital transformation in the public sector and T4 – building agile and competent digital talent. Key Messages | Awantec 21 Annual Report 2021