1.0 INTRODUCTION

The Board of Directors of Solution Group Berhad wishes to announce that its wholly-owned subsidiary Solution Biologics Sdn Bhd (“SOLBIO”) had on 25 May 2022 entered into a Memorandum of Understanding (“MOU”) with National Institutes Of Biotechnology Malaysia (“NIBM”) and CanSino Biologics Inc. (“CanSinoBIO”).

The MOU formalises the mutual interaction and strengthens the existing relationship between NIBM, SOLBIO and CanSino at the strategic and working level, focusing on joint research programs on the development of human vaccines namely Meningococcal, Dengue, Human Papillomavirus, Hand Foot & Mouth and Zika. It involves the exchange of researchers and technical experts, technology, and knowledge transfer, biomanufacturing, and commercialization of vaccine products for Malaysia and international markets. This MOU provides for continued strengthening of future cooperation between the 3 parties in achieving common goals in providing effective, safe and affordable human vaccines in line with the aspiration of the Malaysian Vaccine roadmap. This MOU will enhance the SOLBIO capability in vaccine research and manufacturing and in the future will contribute to the Malaysian bio-based economy.

NIBM, SOLBIO and CanSinoBIO hereinafter individually referred to as the “Party” or collectively as “the Parties”.

2.0 INFORMATION ON NIBM

NIBM is established as a catalyst for the acceleration in growth of the Malaysian biotechnology industry pursuant to National Biotechnology Policy. NIBM is responsible to promote a knowledge­ based economy through the establishment of a sustainable ecosystem of research, development, innovation, and commercialization  in the areas of industrial, agriculture and healthcare biotechnology including genomics, bioinformatics, molecular biology and vaccines through its three institutes namely Agro-Biotechnology Institute of Malaysia ('ABI'), Malaysian Institute of Pharmaceuticals and Nutraceuticals ('IPHARM') and Malaysia Genome and Vaccine Institute ('MGVI'). NIBM has entered into various collaborative arrangements with other parties in its efforts to catalyse and accelerate the growth a competitive Malaysian biotechnology industry.

3.0 INFORMATION ON CANSINOBIO

CanSinoBIO is an innovative biopharmaceutical company dedicated to exploring best solutions to the prevention of diseases through cutting-edge research & development, advanced manufacturing and commercialization of innovative vaccine products for human use worldwide. CanSinoBIO has developed five key platform technologies, including viral vector-based technology, synthetic vaccine technology, protein structure design and recombinant technology, mRNA technology as well as formulation and delivery technology. At present, CanSinoBIO has six vaccine candidates in the clinical trial stage or new drug application stage. On 19 May 2022, CanSinoBIO received the emergency use listing (EUL) from the World Health Organization (WHO) for its CONVIDECIA COVID-19 vaccine, which shows the international recognition on the safety, quality and efficacy of CanSino’s COVID-19 vaccine.

4.0 SALIENT TERMS OF MOU

4.1 Areas of Co-operation

Each party, subject to the terms of the MOU, the laws, rules, regulations and national policies from time to time in force in Malaysia governing the subject matter, will endeavour to take the following steps in promoting co-operation between the Parties:

a) Establish research collaboration and publication between NIBM, SOLBIO and CanSinoBIO in human vaccine development; and

b) Provide access to technical experts and scientists for knowledge sharing and joint research program subject to terms and conditions to be agreed upon by the Parties; and

c) Provision of industrial and stakeholders input from the Parties via discussions and various activities; and

d) Any other areas of co-operation to be mutually agreed upon by the Parties.

5.0 DURATION OF MOU

5.1 This MOU will come into effect on the date of signing and will remain in effect for a period of THREE (3) years.

5.2 This Memorandum may be renewed to a further period subject to the written agreement by the Parties.

6.0 FINANCIAL EFFECTS OF THE MOU 

The execution of the MOU is not expected to have any material effect on the earnings, net assets and gearing of SGB for the current financial year ending 31 December 2022. The execution of the MOU has no effect on the issued and paid-up share capital and the substantial shareholders’ shareholdings of SGB.

7.0 DIRECTORS AND MAJOR SHAREHOLDERS INTEREST

None of the directors, substantial shareholders of the Company and persons connected to them has any interest, direct and/or indirect, in the MOU.

8.0 APPROVAL REQUIRED

The MOU is not subject to the approval of shareholders of the Company.

9.0 STATEMENT BY DIRECTORS 

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

10.0 DOCUMENTS FOR INSPECTION

The MOU is available for inspection at the Company’s registered office of No. 5-9A, The Boulevard Offices, Mid Valley City, Lingkaran Syed Putra, 59200 Kuala Lumpur during normal office hours from Mondays to Fridays (except on public holidays) for a period of three (3) months from the date of this announcement.

The Company’s Press Release entitled “MEMORANDUM OF UNDERSTANDING SIGNED BY THE NATIONAL INSTITUTES OF BIOTECHNOLOGY MALAYSIA, SOLUTION BIOLOGICS SDN BHD AND CANSINO BIOLOGICS INC” is enclosed for information.

This announcement dated 25 May 2022.