The Board of Directors of NETX Holdings Berhad (“NETX” or “the Company” or "the Group") is pleased to announce that GEM Pay Sdn. Bhd. (“GEM Pay”), a subsidiary of the Company, had on 9 October 2020 entered into a Memorandum of Understanding (“MOU”) with XOX Media Sdn. Bhd. (“XOX Media”), a wholly-owned subsidiary of XOX Bhd, for the purpose to discuss, explore and enter into negotiations in respect of a business arrangement to provide and rent to XOX Media of up to 1,000 units of contactless payment terminals and/or cashless e-wallet payment solutions to be incorporated into smart vending machines.

XOX Media is a private limited company incorporated in Malaysia which primarily involved in the business of telecommunication products and services, mobile application services and E-wallet services. XOX Media has now further ventured into the business of smart vending machines.

Pursuant to the MOU, GEM Pay shall provide and rent to XOX Media of up to 1,000 units of contactless payment terminals and/or cashless e-wallet payment solutions in return for a monthly rental. Whereas, XOX Media shall provide GEM Pay with the deployment road-map in respect of the smart vending machines. 

The MOU shall commence from 9 October 2020 and shall continue to be in force for a duration of 6 months unless one of the following occurs :

(a) the MOU is earlier terminated by either party by giving 1 month prior written notice of its intention to do so to the other party; or

(b) this MOU is superseded by a definitive agreement executed by and between GEM Pay and XOX Media.

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

The MOU will not have any effect on the share capital and substantial shareholders’ shareholdings of NETX. 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 November 2020.

Save as disclosed below, none of the directors and/or major shareholders of the Company and/or persons connected with them have any interest, whether direct or indirect, in the MOU:

(a) Common directorships of Mr. Tan Sik Eek in NETX and XOX Bhd and his shareholdings of 1,000,000 ordinary shares (0.02%) in NETX.

The Board of Director of NETX, 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 9 October 2020.