The Board of Directors (“Board”) of Mlabs Systems Berhad (“Mlabs” or the “Company”) wishes to inform that Mlabs Research Sdn. Bhd. (formerly known as Multimedia Research Lab Sdn Bhd) (“Mlabs Research”), a wholly-owned subsidiary of the Company, had on 27 March 2020 entered into a Collaboration and Co-operation Agreement (“Agreement”) with Ipharmacare (Malaysia) Sdn. Bhd. (“Ipharmacare”) for the proposed collaboration whereby Mlabs Research shall provide its products including but not limited to video-conferencing systems, messaging systems and network solutions (“Products”) to Ipharmacare and Ipharmacare shall incorporate the Products to complement to its Online Pharmaceutical Platform known as iPharma.care as necessary and support Mlabs Research’s effort to promote the Products to its platform users and/or independent pharmacies.

Ipharmacare is a private limited company incorporated in Malaysia which primarily involved in the business of providing online pharmaceutical products and services to merchants and customers through its online pharmaceutical platform.

The Agreement is for a period of 3 years, commencing on and from 27 March 2020, unless otherwise mutually extended or terminated. Either party may terminate the Agreement upon delivery of written notice at least 90 days prior to such 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 and net assets of Mlabs 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 27 March 2020.