The Board of Directors (“Board”) of XOX Bhd (“XOX” or the “Company”) wishes to inform that XOX Mobile Sdn Bhd, an indirect wholly-owned subsidiary of the Company, had on 17 February 2020 entered into a Collaboration and Co-operation Agreement (“Agreement”) with Advance Tech Communication Sdn Bhd (“ATC”) for the proposed collaboration to promote the 4th Generation (“4G”) and 5th Generation (“5G”) smartphones named XPLORE that is equipped with satellite connectivity and digital mobile radio (“Products”) which to be launched by ATC to XOX users whereby XOX will be the first Telecommunication Service Provider to market and promote and distribute the Products to its users across South East Asia.

ATC is a private limited liability company and a 95% owned subsidiary of ADVANCETC LIMITED, a company incorporated in Australia and publicly listed on NSX (A88) and is involved in the development, manufacturing and distribution of mobile devices with space connectivity as well as related satellite and communication services.

The Agreement is for a period of One (1) year, commencing on and from 17 February 2020, unless otherwise mutually extended or terminated. Either party may terminate the Agreement upon delivery of written notice at least Ninety (90) days prior to such termination. Each party shall bear its own costs resulting from or related to the termination. 

The Agreement will not have any effects on the share capital and shareholding structure of the Company.  However, it is expected to have positive contribution to the earnings per share, net assets per share and gearing of the XOX Group.

Similar to all business entities, the risk factors affecting the execution of the Agreement, including but not limited to business risks such as prudent financial management, changes in political, economic and regulatory conditions. However, the Board will continue to exercise due care in considering the risks associated with the Agreement and will take appropriate measures in planning the successful execution of the Agreement.

The Agreement being incurred in the ordinary course of business, is not subject to the approval of the shareholders. 

None of the Directors and/or other major shareholders of the Company and/ or any persons connected to them have any interest, direct or indirect, in relation to the Agreement.

The Board, after due consideration, is of the opinion that the Agreement is in the best interest of the Group.

This announcement is dated 18 February 2020.