KUALA LUMPUR (Feb 7): Reneuco Bhd, whose deadline to submit its latest annual report is Thursday (Feb 8), has set its annual general meeting (AGM), a virtual one, on March 27.
Among the resolutions to be passed in the AGM include to re-elect four directors, namely executive director Sarah Azreen Abdul Samat; as well as independent directors Tunku Datuk Nooruddin Tunku Shahabuddin, Tan Yee Hou and Datuk Dr Md Khir Abdul Rahman.
Its executive chairman Datuk Mustakim Mat Nun does not need to seek re-election as his tenure ends next year. All company directors are required to retire from office once in every three years, according to Reneuco’s company resolution.
Mustakim, who is the company’s largest shareholder, was reappointed together with Tan on Dec 14.
Aside from the five aforementioned individuals, the remaining two board members are independent directors Ahmad Riza Mohd Saian and Datuk Dr Muhammad Mahadi Mohamad — both of whom were reappointed on Dec 7, 2022.
Mustakim holds a 3.46% direct and 21.65% indirect stake in Reneuco, with the deemed interest held largely through OHP Ventures Sdn Bhd. Another substantial shareholder, E&E Catalyst Sdn Bhd, holds a 7.61% direct stake in Reneuco.
Other resolutions to be tabled at the virtual AGM include to approve directors' fees of up to RM894,600; and directors' benefits of up to RM330,600.
Reneuco has been in the spotlight after regulators warned the company that its shares will be suspended if it misses its Thursday deadline to furnish its annual report for that financial period. The group had already missed its initial Jan 31 deadline for the submission, but it was given another five market days until Thursday to do so, to avoid the trading suspension.
Ahead of the deadline, shares of Reneuco fell three sen in active trading to close at five sen on Wednesday, after falling by as much as 4.5 sen earlier. It was the most active counter on Bursa Malaysia with 236.13 million shares traded, representing 21.05% of its issued share base of 1.12 billion shares, and 9.4 times its two-month average volume of 24.96 million shares.
At five sen, the group has a market capitalisation of RM56.1 million. The counter has fallen by 77% this year.
Reneuco had explained that the reason it missed the annual report submission deadline was that its external auditor needed more time to complete its audit. It added that it is working towards submitting the report by the new deadline.
The delay came on the heels of its record quarterly loss of RM125.05 million in its latest quarter ended Sept 30, on the back of RM132.53 million in impairment losses. The group subsequently changed its financial year end to Sept 30, from June 30.
Following the massive impairment losses, the company told The Edge the impairments were mostly related to EPCC contracts for which the relevant project owner had yet to obtain financial close, or pending disbursement from the financiers.
As at end-September, Reneuco had cash of RM14.45 million against total borrowings of RM94.67 million. It had retained losses of RM67.8 million, with net assets valued at 18 sen per share.