1.

INTRODUCTION

Hubline Berhad (“Hubline” or “the Company”) is pleased to announce that its subsidiary, Layang Layang Aerospace Sdn Bhd (“LLA”) has been awarded a contract to provide aircraft and helicopters for the flying doctor service (“FDS”), medical evacuation service (“medevac”) and other ancillary health services to the Sarawak State Department of Health (Jabatan Kesihatan Negeri Sarawak or JKNS) for a total contract sum of Ringgit Malaysia Sixty Three Million Two Hundred Eighteen Thousand and Four Hundred Only (RM 63,218,400) inclusive of 6% SST.

2.

DURATION OF THE CONTRACT

This JKNS contract is for a duration of 48 months, from 1 January 2021 to 31 December 2024.

3.

FINANCIAL EFFECTS

The contract announced herein will have no effect on the issued capital of the Company and is expected to contribute positively towards the earnings of Hubline Group for the financial year 30 September 2021 and the financial years thereafter until the expiry of the contact.

4.

RISK FACTORS

The Company does not foresee any exceptional risk other than operational risk associated with the contract.  Notwithstanding, LLA established a successful track record in undertaking similar contracts and has stringent safety management systems and quality controls. 

5.

INTEREST OF DIRECTORS, SUBSTANTIAL AND/OR MAJOR SHAREHOLDERS AND/OR PERSONS CONNECTED

None of the Directors, substantial and/or major shareholders of Hubline or any persons connected to them have any direct or indirect interest in the contract.

6.

APPROVAL REQUIRED

The Agreement is not subject to the approvals of shareholders of Hubline or any relevant authorities.

7.

DIRECTORS STATEMENT

The Board of Directors of the Company is of the opinion that the acceptance of the contract is in the best interest of the Company.

This announcement is dated 11 January 2021.