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The Malaysian Reserve: AppAsia to tap growing smartphone apps market

AppAsia Bhd, formerly known as Extol MSC Bhd, will roll out several mobile-based app solutions next year and tap the growing smartphone apps market in Malaysia and other countries, following a restructuring of the company and boardroom tussle.

Chairman Datuk Wira Rahadian Mahmud Mohammad Khalil said the company has restructured its business model and has written-off unprofitable solutions and streamlined its product offerings to those that have potential to generate revenue.

“With the new management onboard, we have reviewed all our product line and we have identified products that have future potential to generate revenue for the company and we will continue to invest in these products,” he told The Malaysian Reserve (TMR) after the company’s EGM on Saturday.

In June this year, a high court judge has sided with Extol and found valid the removal of then chairman Ahmad Ismail and company directors Mohd Faizal Ahmad Mahidin and Megat Mohd Hazim Megat Mohd Aminuddin through an EGM on May 28 in Kuala Lumpur.

The suit was brought by Extol shareholders Manjung Untung Sdn Bhd and Crystal Privilege Sdn Bhd to remove the board members.

Rahadian Mahmud said with the change in the board, the company is now in a more stable platform in terms of management, operations and in a more competitive edge to tap the fast-growing mobile app market and increase its earnings potential.

“We are going into the mobile app business and will be investing in research and development (R&D) to roll out new products while at the same time enhance our existing product line,” he said.

The company is in the middle of testing a few products and will be launching them to the market within a few months, he added.

At the EGM on Saturday, shareholders approved AppAsia’s proposed rights issue exercise, involving 138.9 million renounceable rights shares of 10 sen each along with 138.9 million free detachable warrants.

The rights shares will be issued on the basis of one rights share together with one warrant for every one existing Extol share held.

According to its circular to shareholders, AppAsia will be allocating RM3.88 million for R&D while RM1.15 million and RM8.35 million will be utilised for the purchase of production and operation equipments, and working capital respectively from the money raised.

The shareholders approved the change of name from Extol MSC Bhd to AppAsia Bhd, and gained confidence to proceed with its plans to raise capital for R&D and purchase of new equipment and machinery to further enhance its presence in the mobile app sphere, both domestically and internationally.

“We will continue to invest in existing and new products for the local market and we aim to offer more localised apps to cater for local market as most of the apps you see in Apple’s App Store and Google Play are mostly developed overseas,” he said.

(Source: The Malaysian Reserve, 17 November 2014 (Monday), by John Gilbert. Also available: http://themalaysianreserve.com/main/news/corporate-malaysia/7579-appasia-to-tap-growing-smartphone-apps-market)