The Board of Directors of Spring Gallery Berhad (“SGB”) wishes to announce that at the Extraordinary General Meeting (“EGM”) of the Company held today, 1 March 2016, at 9.00 a.m., the Special and Ordinary Resolutions set out in the Notice of EGM dated 5 February 2016 in relation to the following were duly approved by the shareholders of the Company:-

1. Proposed amendments to the Memorandum and Articles of Association of SGB to facilitate the issuance of the proposed rights issue of irredeemable convertible preference shares with warrants and proposed increase in authorised share capital (“Proposed Amendments”);
2. Proposed increase in the authorised share capital of SGB from RM100,000,000 comprising 200,000,000 ordinary shares of RM0.50 each (“SGB Shares”) to RM550,000,000 comprising 1,000,000,000 SGB Shares and 1,000,000,000 irredeemable convertible preference shares of RM0.05 each in SGB (“ICPS”) (“Proposed increase in authorised share capital”);
3. Proposed renounceable rights issue of up to 522,500,000 ICPS on the basis of five (5) ICPS for every one (1) existing ordinary share of RM0.50 each in SGB held, together with up to 52,250,000 free detachable warrants (“Warrants”) on the basis of one (1) Warrant for every ten (10) ICPS subscribed at an entitlement date to be determined later (“Proposed Rights Issue of ICPS with Warrants”); and
4. Proposed diversification of the business of SGB and its subsidiaries to include the property construction and related businesses (“Proposed Diversification”).

This announcement is dated 1 March 2016.