PHARMANIAGA BERHAD (the “Group”)

STATEMENT OF MATERIAL UNCERTAINTY RELATED TO GOING CONCERN IN RESPECT OF

THE GROUP’S FINANCIAL STATEMENTS FOR THE FINANCIAL PERIOD ENDED 31 DECEMBER
2023

Pursuant to paragraph 9.19(37) of the Main Market Listing Requirements of Bursa Malaysia
Securities Berhad and the Company’s 2023 Integrated Report which was released on 29 April
2024, the Board of Directors of the Group wishes to announce that the Group’s independent
auditors, Messrs PricewaterhouseCoopers PLT (“Auditors”) have included a statement of
material uncertainty related to going concern in its independent auditors’ report dated 29 March
2024 in respect of the financial statements of the Group for the financial year ended 31 December
2023.

The Auditors had audited the financial statements of the Group and of the Company, which
comprise the statements of financial position as at 31 December 2023 of the Group and of the
Company, and the statements of profit or loss, statements of comprehensive income,
statements of changes in equity and statements of cash flows of the Group and of the Company
for the financial year then ended, and notes to the financial statements, including a summary of
significant accounting policies, as set out on pages 190-307 of the Company’s Integrated Report
2023.

Extraction of the Auditor’s Opinion from the Auditor’s Report is as follows:-

“Material Uncertainty Related to Going Concern

We draw attention to Note 2 in the financial statements, which indicates that the Group and the
Company incurred net loss of RM78.7 million and RM63.3 million respectively during the year
ended 31 December 2023. As of 31 December 2023, the Group’s and the Company’s current
liabilities exceeded their current assets by RM895.0 million and RM439.0 million respectively, and
the Group recorded a capital deficiency of RM274.1 million. As stated in Note 2, these events or
conditions indicate that a material uncertainty exists that may cast significant doubt on the
Group and Company’s ability to continue as a going concern. Our opinion is not modified in
respect of this matter.”

STEPS TAKEN OR PROPOSED TO BE TAKEN TO ADDRESS THOSE MATTERS THAT RELATES TO

THE MATERIAL UNCERTAINTY RELATED TO GOING CONCERN

As announced on 26 June 2023, Bursa Securities had, vide its letter dated 23 June 2023, resolved
to approve the listing of and quotation for up to 131,020,866 new Placement Shares to be issued
pursuant to the Proposed Private Placement of the Company and the Private Placement has been
completed on 24 July 2023.

In addition, an application in relation to revised Proposed Rights Issue with Warrants and revised
Proposed Private Placement along with the Proposed Capital Reduction (“Proposed
Regularisation Plan”) has been announced on 19 February 2024 and submitted to Bursa
Securities for approval on 23 February 2024. Upon approval of the Proposed Regularisation Plan,
the implementation will take place tentatively by Q4 2024.
TIMELINE FOR STEPS REFERRED ABOVE

Barring any unforeseen circumstances, the Group expects to resolve the issues relating to the
material uncertainty upon the implementation of the Proposed Regularisation Plan.

This announcement is dated 8 May 2024.