KUALA LUMPUR (Oct 19): Zetrix AI Bhd (KL:ZETRIX) said on Monday that it is withdrawing a planned dividend payment declared two months ago to conserve cash.
“The board's decision is intended to preserve the company's working capital due to unexpected operational expenses,” the digital services company said in a bourse filing without elaborating further.
The first interim dividend of 0.25 sen per share for the financial year ending Dec 31, 2026 was announced on Aug 24, with an ex-date of Oct 22 and a payment date of Nov 20.
Based on the company’s 7.898 billion outstanding shares, withdrawing the dividend would conserve about RM19.74 million, providing some relief for its working capital.
However, this amount is modest compared with the RM314 million in unremitted collections Zetrix AI owes the Road Transport Department (JPJ) and a potential RM2.16 billion obligation if it fails to remedy a breach of its sukuk covenant by Oct 22, 2026. The covenant requires managing director Wong Thean Soon to remain the company’s largest shareholder.
Margin calls on Wong’s share-backed financing facilities since late August have reduced his stake in the company from nearly 30% to 1.887% as at Oct 16, 2026. Wong previously told The Edge Malaysia that the disposals were not voluntary and that he was considering legal action over suspected collusion and share price manipulation.
As at end-June, the company held RM541.6 million in cash and RM532.88 million in digital assets, including cryptocurrencies, against RM2.19 billion in borrowings and more than RM90 million in trade payables, other payables and accruals.
Zetrix AI had also repeatedly postponed payment of its 2.89 sen final dividend for the financial year ended Dec 31, 2025, from Sept 18 to Sept 24 and then Sept 28, citing a High Court interim injunction sought by an undisclosed substantial shareholder. The group eventually paid the dividend in full, except to shareholders affected by the legal action.
If Zetrix AI fails to remedy the covenant breach by Oct 22, it could face a dissolution event that would allow sukuk holders to demand immediate repayment of the RM2 billion principal and RM164.5 million in future coupon payments, bringing the total potential obligation to RM2.16 billion.
In an Oct 16 reply to Bursa Malaysia, Zetrix AI said it would seek sukuk holders’ approval for a waiver or further instructions if the breach could not be remedied.
The company, which operates MyEG Sdn Bhd, is also under police investigation over its failure to remit millions of ringgit collected on behalf of JPJ between May and September.
As a result, the government suspended Zetrix AI and its subsidiary MyEG Sdn Bhd from their roles as JPJ collection agents from Oct 5.
Transport Minister Anthony Loke Siew Fook said the companies’ collection agent roles would not be reinstated until the outstanding collections were settled. Even then, additional conditions would be imposed, including requiring payments to be credited directly to the government’s account.
Zetrix AI shares fell 9.09%, or half a sen, to five sen on Monday, a level last seen 14 years ago. Some 108 million shares changed hands.
At that closing price, the group was valued at RM394.9 million.