Reference is made to our announcements made on 17 May 2019 and 21 May 2019, in which we announced that the Company is an affected listed issuer (“PN17 Company”) and further clarified that it had triggered Paragraph 2.1(f) only as the Company had received a notice of demand dated 17 May 2019 from EXIM Bank due to breach of terms in facility agreement for failing to make instalment payments pursuant to Paragraph 9.19A of the Listing Requirements and the Company is unable to provide a solvency declaration to Bursa Securities.

The Company had, on 21 May 2019, announced that the Board of Directors of Barakah ("Board") had approved the incorporation of the revaluation deficit of approximately USD39 million (RM161.1 million) in the unaudited consolidated financial statements of Barakah for the financial period ended ("FPE") 31 May 2019.  The said revaluation deficit was a result of a valuation carried out on its all steel welded / constructed accommodation / pipelay barge ‘Kota Laksamana 101’.  The valuation carried out was one of the proactive measures taken by Barakah to manage and restructure the debt levels of the Group and to ascertain the fair value of the PPE of the Group for accounting purposes pursuant to Malaysian Financial Reporting Standards ("MFRS") 116: Property, Plant and Equipment.

Pursuant to the above, we wish to announce that the Company has triggered the prescribed criteria under Paragraphs 2.1(a) and 2.1 (e) of PN17 of the Listing Requirements today as:

(a) the shareholder’s equity of Barakah on a consolidated basis is 25% or less of its issued share capital and such shareholders’ equity is less than RM40.00 million, calculated based on the unaudited interim financial results of Barakah for 31 May 2019. As a result, the Company had triggered Paragraph 2.1(a) of PN17 of Listing Requirements; and

(b) the external auditors of the Company, Messrs. Crowe Malaysia, had express material uncertainty related to the going concern of Barakah in the audited financial statements of FYE 31 December 2017 of Barakah and the shareholders’ equity of Barakah on a consolidated basis is 50% or less of its issued share capital calculated based on the unaudited interim financial results of Barakah for the FPE 31 May 2019. As a result, the Company had triggered Paragraph 2.1(e) of PN17 of Listing Requirements.

We wish to announce that we are in the midst of finalising a plan to regularise our financial condition (“Proposed Regularisation Plan”). The Company has approximately ten (10) months to submit its Proposed Regularisation Plan to the relevant authorities for approval.

We will make the necessary announcement on further development of the Proposed Regularisation Plan in accordance with the requirements under PN17 of the Listing Requirements.

The announcement is dated 25 June 2019.