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MEMORANDUM OF UNDERSTANDING KEY ALLIANCE GROUP BERHAD - MEMORANDUM OF UNDERSTANDING WITH KOPERASI PESERTA-PESERTA RANCAGAN FELCRA SEBERANG PERAK BERHAD

KEY ALLIANCE GROUP BERHAD

Type Announcement
Subject MEMORANDUM OF UNDERSTANDING
Description
KEY ALLIANCE GROUP BERHAD 
- MEMORANDUM OF UNDERSTANDING WITH KOPERASI PESERTA-PESERTA RANCAGAN FELCRA SEBERANG PERAK BERHAD

The Board of Directors (“Board”) of Key Alliance Group Berhad (“KAG” or the “Company”) wishes to announce that Agrocloud Sdn. Bhd. (“Agrocloud”), a subsidiary of the Company, had on 1 June 2022 entered into a Memorandum of Understanding (“MOU”) with Koperasi Peserta-Peserta Rancagan Felcra Seberang Perak Berhad (“Koperasi Felcra”) for the proposed collaboration on the development and implementation of the Rice Information System at the estate of Felcra Berhad Seberang Perak, Kg. Gajah, Perak (“Proposed Collaboration”) to :

 

(a) increase the yield of rice cultivation through Internet of Things (IOT) technology and Decision Support System (DSS) via the Rice Information System; and

 

(b) ensure that the farming methods used are modern and fully mechanised farming methods, as well as implement the appropriate farming methods to be determined later.

 

Koperasi Felcra is a co-operative organisation incorporated in Malaysia and registered with the Malaysian Co-Operative Society Commission (SKM) with the purpose of improving the socio-economic status of the participating communities via the establishment of commercial and business entities orientated toward the welfare and empowerment of its participating members.

 

Pursuant to the MOU, Koperasi Felca shall act as the coordinator for the Proposed Collaboration and facilitate the necessary for the implementation of the Rice Information System. Whereas, Agrocloud shall provide Koperasi Felca with the relevant information technology, equipment, platform as well as training for the Proposed Collaboration.

 

The MOU shall take effect on the 1 June 2022 and shall remain in force for a period of  12 months. The MOU may be renewable by either party by giving 3 months prior written notice to the other party. Either party may also terminate the MOU before the expiry date by giving 3 months prior written notice of its intention to do so to the other party.

 

The MOU 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 KAG Group’s future earnings per share, net assets per share and gearing.

 

Similar to all business entities, the risk factors affecting the execution of the MOU, 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 MOU and will take appropriate measures in planning the successful execution of the MOU.

 

The MOU 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 MOU.

 

The Board, after due consideration, is of the opinion that the MOU is in the best interest of the Group.

 

This announcement is dated 2 June 2022.






Announcement Info

Company Name KEY ALLIANCE GROUP BERHAD
Stock Name KGROUP
Date Announced 02 Jun 2022
Category General Announcement for PLC
Reference Number GA1-02062022-00015