We refer to the Company’s announcements made on 25 November 2019, 3 December 2019, 13 December 2019, 24 December 2019, 26 December 2019, 17 January 2020, 12 February 2020, 13 February 2020, 25 February 2020, 19 March 2020, 23 March 2020 and 26 March 2020 in relation to the Proposals (“Announcements”). Unless otherwise stated, all defined terms and abbreviations used in this announcement shall carry the same meaning as those previously defined in the Announcements.

The Board of Directors of NOVAMSC (“Board”) wishes to announce that the Board had resolved to vary the utilisation of proceeds of approximately RM3.0 million as below:-

* As stated in the Circular to Shareholders dated 26 December 2019, any variation in the actual amount of expenses will be adjusted to/from the amount allocated to fund the operating and capital expenditures for secured IT contracts.

# Working capital include staffs’ costs, rentals and other fixed operating expenses.

The variation in the utilisation proceeds would enable the Company to utilise the proceeds from the Proposals in line with the current economy situations and business needs of the Company and/or its subsidiaries, more so with the current geopolitical instabilities and increasing interest rates environment.

The variation in the utilisation proceeds is not subject to any approval by regulatory authorities or shareholders of the Company. Nonetheless, the Board shall continue to be prudent in managing the proceeds and will continue to disclose the status of the utilisation of such proceeds in its quarterly results and annual reports until its full utilisation.

The Board is of the opinion that the variation in the utilisation proceeds will not have any adverse effect on the financial performance of the Company and it is the best interest of the Company.

This announcement is dated 19 December 2022.