Bonus Issue/ Capitalisation Issue::Mandatory

A-SONIC AEROSPACE LIMITED

Regn. No. 200301838G

APPROVAL IN-PRINCIPLE FROM SGX-ST:

PROPOSED ONE (1) BONUS WARRANT FOR EVERY FOUR (4) EXISTING SHARES, AT AN EXERCISE PRICE OF S$0.08 FOR EACH WARRANT INTO A NEW SHARE.

1. INTRODUCTION
   The board of directors ("Board") of A-Sonic Aerospace Limited (the "Company") refers to the announcement dated 26 May 2021 in respect of the Proposed Bonus Warrants Issue (the "May Announcement"). Unless otherwise defined herein or the context otherwise requires, all capitalised terms used in this Announcement shall bear the same meanings ascribed to them in the May Announcement.
2. RECEIPT OF APPROVAL IN-PRINCIPLE ("AIP")
   Further to the May Announcement, the Board is pleased to announce that on 25 June 2021, the SGX-ST granted AIP for the dealing in, listing of and quotation for the Bonus Warrants (also referred to as "Warrants" herein) and New Shares which may be allotted and issued pursuant to the exercise of the Bonus Warrants on the Official List of the SGX-ST subject to the following conditions:
3. 1. compliance with the listing requirements of the SGX-ST;
   2. submission of the following:
   3. 1. a written confirmation that the bonus issue is in compliance with the relevant provisions of the Companies Act, (Cap.50) of Singapore;
      2. a written confirmation from the Company that there is a satisfactory spread of warrant holders to provide an orderly market for the Bonus Warrants, in compliance with Rule 826 of the Listing Manual;
      3. a written undertaking from the Company that it will comply with Rule 704(30) of the Listing Manual in relation to the use of the proceeds arising from the exercise of the Bonus Warrants and where the proceeds are to be used for working capital purposes, the Company will disclose a breakdown with specific details on the use of proceeds for working capital in the Company's announcements on use of proceeds and in the annual report;
      4. a written undertaking from the Company that it will comply with Rule 831 of the Listing Manual;

1. a written confirmation from the Company that it must announce any adjustment or amendment made to the terms of the issue, in compliance with Rule 830 of the Listing Manual; and
2. a written confirmation from the Company that the terms and conditions of the Warrants will provide for adjustment to the Exercise Price, in compliance with Rule 829(1) of the Listing Manual.

The AIP is not to be taken as an indication of the merits of the Proposed Bonus Warrants Issue, the Warrants, the New Shares, the Company and/or its subsidiaries.

1. EXERCISE PERIOD OF BONUS WARRANTS
   Shareholders should note that the Warrants will have an Exercise Period commencing on (and including) the date immediately following the date falling six (6) months from the date the Warrants are first listed and quoted on the Official List of the SGXST ("Warrants Listing Date") and expiring at 5.00 p.m. on the date falling nine (9) months from the Warrants Listing Date, subject to the terms and conditions of the Warrants. The Warrants cannot be exercised prior to the expiry of the above-mentioned six (6) months period. This is in view of the exemption accorded under Regulation 31(1) of the Securities and Futures (Offers of Investments) (Securities and Securities-based Derivatives Contracts) Regulations 2018, which exempts the Company from issuing any prospectus, profile statement or offer information statement in relation to, and for the purpose of, the issue of Bonus Warrants structured in this manner.
   The right to exercise the Warrants will not be extended beyond the Exercise Period. The Warrants remaining unexercised at the expiry of the Exercise Period shall lapse and cease to be valid for any purpose.
2. GENERAL
   The following documents will be made available for inspection at the offices of M & C Services Private Limited at 112 Robinson Road, #05-01, Singapore 068902 (the "Warrant Agent's Office") upon prior appointment and during normal business hours for a period of three (3) months from the date of this Announcement:
3. 1. the draft of the Deed Poll; and
   2. the draft of the warrant agency agreement to be entered into between the Company, as issuer and M & C Services Private Limited as warrant agent and share registrar (the "Warrant Agency Agreement").

Upon execution, copies of the executed Deed Poll and Warrant Agency Agreement will be made available for inspection at the Warrant Agent's Office in place of the drafts referred to above.

Please call 6228 0518 or 6228 0560 to arrange an appointment for the inspection of the above documents at the Warrant Agent's Office. Please also note that all visitors to the Warrant Agent's Office will be subject to temperature checks and SafeEntry requirements.

A further announcement will be made in respect of the Record Date in due course.

Issued By Order of the Board

Seoh Choon Hong

Joint Company Secretary

26 June 2021

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