We refer to our announcements on 28 November 2017 and 12 December 2017 in relation to an Outsourcing Agreement (“Agreement”) between Formis Network Services Sdn Bhd (“FNS”), a subsidiary of Omesti Berhad and Suruhanjaya Syarikat Malaysia (“SSM”) for the supply, implementation, training, support and maintenance of the SSM’s Core Digital Registry Solution (“Core Project”).

The Company wishes to announce that FNS has received a letter dated 8 July 2020 from Messrs Rahmat Lim & Partners, the solicitors acting for SSM confirming that SSM has maintained its decision to terminate the Agreement in accordance with SSM’s 5 August 2019 letter as SSM believes that no amicable solution can be reached between the parties. Prior to this, the parties have been in dispute resolution discussions, a mechanism provided for under the Agreement, since FNS took the position and continues to maintain the position that SSM has wrongfully terminated the Agreement and that FNS did not accept the said termination as it was invalid.

The Company maintains that FNS is not in default of the Agreement and the Agreement has been wrongfully terminated. In view thereof, FNS will take such further actions as are necessary to enforce its rights and to claim for, amongst others, all costs incurred for the development of the Core Project and damages arising from the wrongful termination.

The Company has not recognised any financial contributions from the Core Project to-date. There is no financial impact for the financial year ending 31 March 2021 to the Group.

The Board wishes to highlight that the Company has a readily available working digital business registry solution, known as BR-IDGE. This solution, which is configurable and can be deployed on a modular basis, has attracted significant interest in various international jurisdictions where agreements have been finalised with local partners. These include Thailand and the wider SE Asia region, Kuwait and the Middle East, and South Africa and the wider African Continent.

The Company will make the requisite announcement on further developments on the above matter in due course.

This announcement is dated 9 July 2020.