The Board of Directors of MPay is pleased to announce that on 28 December 2022, the Company entered into a non-legally binding memorandum of understanding (the “MOU”) with the Eddid Financial Holdings Limited (“Eddid” or the “Cooperator”) pursuant to co-operate to launch and market an internet-based securities trading mobile application of Eddid in Malaysia, with the assistance and cooperation of MPay, and continue to collaborate between each other in Malaysia (the “Possible Cooperation”).

Eddid is a company incorporated under the laws of Hong Kong. Eddid comprises various subsidiaries that deal with Securities and Futures Commission of Hong Kong (SFC) regulated businesses and activities including dealing in securities, dealing in futures contracts, leveraged foreign exchange trading, advising on securities, advising on futures contracts, and asset management, as well as unregulated businesses like Fintech.

The intention of the MOU is to formally establish the Partnership in Malaysia (“Partnership”) for Eddid ONE International version (“Eddid ONE International”), a securities trading application developed by Eddid to be launched and market in Malaysia with the technical, regulatory, compliance and marketing collaboration with MPay.

The goal of the MOU is to empower Eddid ONE International to digitally onboard investors using AI and deep machine learning powered eKYC solution of MPay which is approved by local authorities; cross link Eddid ONE International via MPay Fintech apps (the “Apps”) as the channel for Malaysian users or international users with valid passports or identity card issued by respective countries’ authorities to obtain Eddid ONE International trading accounts with the SFC licensed subsidiary(ies) and/or its affiliate(s) of Eddid Financial Holding Limited (subjected to approval from the licensed entity); and to provide remittance services for clients to channel funds into and/or out of Eddid ONE International via MPay’s HomeRemit cross border remittance application in accordance with Bank Negara Malaysia’s requirements.

To the best knowledge, information and belief of the directors of the Company (the “Directors”), having made all reasonable enquiries, the Cooperator is independent of and not connected with the Company and connected persons (as defined in the ACE Market Listing Requirements of Bursa Malaysia Securities Berhad (“AMLR”)) of the Company.

The Company and the Cooperator will proceed with further negotiation for the entering into of the formal and binding agreement in respect of the Possible Corporation (the “Formal Agreement”) within 360 days from the date of the MOU (or such later date as may be agreed by the parties).

The MOU shall terminate upon the earlier of (i) the date of the Formal Agreement and (ii) the day falling 2 years after the date of the MOU (or such later date as may be agreed by the parties), save for certain surviving provisions.

The MOU shall create no legal and binding obligations on the parties thereto save for provisions relating to confidentiality and governing law.

The entering of the MOU will enable the Company to have the opportunity to exploit oversea securities and futures market thereby improving the overall performance of the Company’s business.

If the Formal Agreement materializes, the Possible Cooperation may constitute a notifiable transaction of the Company under the AMLR. Further announcement(s) will be made by the Company in accordance with all applicable requirements of the AMLR as and when appropriate.

The MOU is not expected to have any material effect on the earnings per share, net assets per share and gearing of the Company for the financial year ending 31 December 2023, and issued and paid-up share capital and substantial shareholders’ shareholdings.

The risks factors involved in this MOU at this juncture is minimal and in the event MPay enters into a definitive agreement, the management of the Company will exercise due care in considering the associated risks and benefits.

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

The MOU is not subject to approval of the shareholders of MPay and any relevant government authorities.

This is a voluntary announcement made by the Company.

This announcement is dated 9 January 2023.