The Company had, on 29 June 2022, received a copy of Writ of Summons and Statement of Claim dated 27 June 2022 (“Suit”) from one Kazuomi Kaneto and DPI Solar 1 Pte Ltd (“Plaintiffs”) alleging that the Company had, among others, the following:-

1. procured and induced the breach of fiduciary duties and/or trust of the relevant defendants (not the Company) owed to the Plaintiffs;
2. wilfully and recklessly failed to make such inquiries as an honest and reasonable man would make of, the dishonest and fraudulent designs of the relevant defendants (not the Company);
3. unlawfully conspired to injure the Plaintiffs by unlawful means; and
4. wrongfully and/or unlawfully interfered with the Plaintiffs’ trade.

The Company has no dealings whatsoever with the Plaintiffs. The Suit is due to the disputes between the Plaintiffs and the promoters, director and/or shareholders of the Kuala Muda Project (as defined below) and Machang Project (as defined below).

On 19 January 2022, reNIKOLA Sdn Bhd (“reNIKOLA”) has entered into deeds of arrangement with Idiqa Holding Sdn Bhd to, among others, subscribe new redeemable preference shares (“RPS”) in Idiwan Solar Sdn Bhd (the project company for 30 MW solar plant in Machang) as well as subscribe new RPS and acquire Machang Estate Sdn Bhd and Machang Estate (II) Sdn Bhd (“Machang Project”).

On 24 March 2022, reNIKOLA has entered into deeds of arrangement with BGMC Corporation Sdn Bhd and Bras Ventures Bhd (where applicable) to, among others, subscribe new RPS in BGMC Bras Power Sdn Bhd (the project company for 30 MW solar plant in Kuala Muda) as well as subscribe new RPS and acquire Kuala Muda Estate Sdn Bhd (“Kuala Muda Project”).

Pursuant to the supplemental agreement to SSA dated 8 June 2022 (“Supplemental SSA”) entered into between the Company and inter alia, reNIKOLA Sdn Bhd, the Company is to acquire/own, through reNIKOLA Holdings, inter alia, the Machang Project and Kuala Muda Project. The Company’s acquisition of reNIKOLA Holdings is not completed yet and is subject to the fulfilment of all conditions precedent under the Supplemental SSA, which include the due diligence by the Company.

The Company has appointed solicitors to defend the Suit and the Board of Directors has been advised by the Company's solicitors that the Suit has no merits, and is frivolous, vexatious and an abuse of the Court’s process. Meanwhile, the Company is also considering a counterclaim against Plaintiffs for, inter alia, damages.

The case management for the Suit is fixed on 19 July 2022.

The Company will make further announcements on the development of the Suit as and when necessary.

This announcement is dated 30 June 2022.