XOX

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MEMORANDUM OF UNDERSTANDING XOX BHD - MEMORANDUM OF UNDERSTANDING WITH DGB NETWORKS SDN. BHD.

Amended Announcements
Please refer to the earlier announcement reference number: GA1-16042020-00026

XOX BHD

Type Announcement
Subject MEMORANDUM OF UNDERSTANDING
Description
XOX BHD 	
- MEMORANDUM OF UNDERSTANDING WITH DGB NETWORKS SDN. BHD.

The Board of Directors of XOX Bhd (“XOX” or “the Company” or "the Group") is pleased to announce that XOX Media Sdn. Bhd. (“XOX Media”), a wholly-owned subsidiary of the Company, has on 16 April 2020 entered into a Memorandum of Understanding (“MOU”) with DGB Networks Sdn. Bhd. (“DGB Networks”), a wholly-owned subsidiary of DGB Asia Berhad (“DGB”) for the purpose of forming a collaborative partnership agreement, to deploy mass market Artificial Intelligence (“AI”) vending machines which will dispense key everyday fast-moving consumer goods such as small sanitiser bottles, face masks, sweets and candy, soft drinks and other sundry consumables across the country in 3 phases, details of which are as follows (“Collaboration”):

 

a) Phase 1 of the business plan is the immediate deployment of up to 1,000 AI vending machines throughout Malaysia, focusing in urban environments where convenience and digital adoption is of the highest requirements. 

 

b) Phase 2 will include upgrades to the existing footprint involving machine learning, AI led marketing, streamlined inventory distribution points and partnership branding. There will also be a cooperative structure for franchising of the vending machines to individuals and businesses that are keen to mobilise. XOX Media will focus on its 9,000 existing dealers to attempt to increase the footprint.  

 

c) Phase 3 will dovetail to expansion across the region led by XOX Media’s partnerships in Thailand and Indonesia. Technological advances, upgrades and interactive media will be included in this phase across all of the vending machine networks, providing a digital ecosystem of AI targeted marketing. 

 

DGB Networks is a wholly-owned subsidiary of DGB, a public company listed on ACE Market of Bursa Malaysia Securities Berhad. DGB Networks is primarily involved in the business of parcel delivery and collection services for electronic commerce sector.

 

Pursuant to the MOU, DGB Networks will provide its expertise in the software integration, machine learning technology, application development and marketplace deployment. DGB Networks will also be responsible in the design, manufacture and procurement of the vending machines. Whereas, XOX Media will provide connectivity and digital content for the machines, branding and footprint in the initial deployment, and a ready customer base across its 2.0 million subscribers nationwide. 

 

The MOU shall be valid for a period of 60 days from 16 April 2020, and may be further extended by mutual agreement in writing of DGB Networks and XOX Media (collectively as “the Parties”). The MOU shall terminate by a notice in writing by any party or upon the Parties entering into the definitive agreement for the Collaboration.

 

The MOU will not have any effect on the share capital and substantial shareholders’ shareholdings of XOX. The MOU is also not expected to have any material immediate effect on the earnings per share, net assets per share and gearing of the Group for the financial year ending 30 September 2020.

 

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

 

Save and except for Mr. Tan Sik Eek, who is the Executive Director of both DGB and XOX, none of the directors, major shareholders of XOX and/or persons connected to them has any interest, direct or indirect in the MOU. 

 

The Board of Director of XOX, having taken into consideration all aspects of the MOU, is of the opinion that the MOU is in the best interest of the Group.

 

This announcement is dated 16 April 2020.




Please refer attachment below.

Attachments

XOX - Press Release.pdf
165.2 kB



Announcement Info

Company Name XOX BHD
Stock Name XOX
Date Announced 16 Apr 2020
Category General Announcement for PLC
Reference Number GA1-16042020-00079