Multi Sports Holdings Ltd. announced that MULTI SPORTS, had on 21 May 2019 entered into a memorandum of understanding with SSSB which is principally involved in the construction industry. The company is contemplating and proposing a restructuring scheme in its efforts to regularize its financial position and SSSB has expressed its interest to participate in the Proposed Restructuring Scheme. The Proposed Restructuring Scheme comprises the following tentative proposals which are inter-conditional upon each other: - (a) the proposed incorporation of a new company ("Newco") to facilitate the Proposed Restructuring Scheme whereby Newco will take over and assume the listing status of the company and the shareholders of the company will become shareholders of Newco pursuant to the terms of the MOU; (b) the proposed capital reconstruction of the share capital of the company, if necessary; (c) the proposed capitalization of the accrued liabilities and debts owing by the company to its creditors; and (d) the proposed acquisition of the entire issued share capital of SSSB by Newco at a purchase consideration to be mutually agreed later subject to valuation, which will be satisfied through the issuance of new shares in Newco. In consideration of the Proposed Restructuring Scheme and the proposed transfer of the listing status of the company to Newco, SSSB proposes to issue up to MYR 15.0 million worth of Newco Shares in the following manner: - (a) Up to RM9.0 million worth of Newco Shares to the existing shareholders of the company and to be distributed according to the percentage of shareholding held by such shareholders at an entitlement date to be determined later; and (b) Up to MYR 6.0 million worth of Newco Shares as full and final settlement of the accrued liabilities and debts outstanding to the creditors pursuant to the Proposed Capitalization of Debts. The parties have reached an understanding and agreement to negotiate exclusively with each other with the view and intention of entering into a definitive agreement to implement the Proposed Restructuring Scheme on or before the expiry of Thirty (30) days from the date of the MOU (or such extended time period as the parties may mutually agree). The execution of the Definitive Agreement by the parties shall be conditional upon: (a) the approval from Bursa Securities for an extension of time pursuant to Practice Note 17/2005 for the submission of a regularization plan by the Company; and (b) the approval inprinciple from the creditors of the Company in respect of the Proposed Capitalization of Debts.