This article first appeared in The Edge Financial Daily, on October 27, 2015.

KUALA LUMPUR: CLIQ Energy Bhd clarified yesterday that its proposed RM210 million cash call only requires a simple majority of all security holders voting on the proposal.

In a filing with Bursa Malaysia yesterday, CLIQ said this was in accordance with an ordinary resolution in relation to the proposed rights issue with warrants, as announced by the company on Oct 8, which stated that the proposal only requires a simple majority of all the holders of securities in CLIQ voting in favour of the cash call.

“Members of the management team and person(s) connected to them are allowed to vote on the ordinary resolution to approve the proposed rights issue of warrants,” the filing stated.

CLIQ was responding to an article that appeared in The Edge weekly for the week of Oct 26 to Nov 1 this year, which detailed CLIQ’S proposed RM210 million cash call. It was reported that the special purpose acquisition company (SPAC) had a lot riding on its cash call as it sought to secure a qualifying asset (QA) within its three-year window, which would close in April next year. The report stated that a rights issue requires a simple majority of 50%, but in the case of a SPAC, however, a 75% acceptance is necessary as mandated by the Securities Commission.

CLIQ said the SC’s equity guidelines stated that the QA needed to be approved by a majority in number of shareholders in CLIQ, representing at least 75% of the total shares.Members of the management team and person connected to them are not allowed to vote on the special resolution to approve the QA,” it added.

Notwithstanding this, CLIQ said since the QA and the proposed cash call are inter-conditional upon each other, hence, with regards to the approvals to be obtained (which includes the approval of the shareholders), the proposed rights issue with warrants, even if approved by CLIQ’s shareholders, will not be implemented if the QA is not approved by the shareholders of the company.