The Board of Directors of MMAG Holdings Berhad (“MMAG” or “the Company”) wishes to announce that M Jets International Sdn.Bhd (“MJets” or “Defendant”), an 80%-owned subsidiary of the Company, had on late evening, 17 January 2023 been served a Writ of Summons and Statement of Claim both dated 16 January 2023 by AeroControl Group DWC-LLC (“Plaintiff”).

Further details pertaining to the Writ of Summons and Statement of Claim are as follows:-

1. The particulars of the claim under the Writ of Summons and Statement of Claim, including the amount claimed and the interest rate.

The Plaintiff's claims from the Defendant are as follows:

(a) a sum of USD536,387.44 and/or a sum of RM2,312,902.64 as at 16 January 2023;

(b) interests on the sum of USD536,387.44 and/or a sum of RM2,312,902.64 at the rate of 5% per annum from the date of judgment until full and final settlement;

(c) costs; and

(d) any further details and/or other order this Honourable Court deems fit.

2. The details of circumstances leading to the filing of the Writ of Summons and Statement of Claim against MJets.

MJets fails to make the full payment towards the outstanding invoices issued by the Plaintiff for the fuel uplift services provided by the Plaintiff.

3. Confirmation as whether MJets is a major subsidiary and the cost of investment in MJets.

MJets is not a major subsidiary of MMAG. The total cost of investment in MJets is amounting to RM44,661,073.50.

4. The financial and operational impact of the Writ of Summons and Statement of Claim on MMAG group.

The suit is not expected to have any material operational impact on MMAG Group.

If the claim is allowed, there is no material financial impact as the amount had already been fully provided in the accounts except for any additional cost or interest granted (if any).

5. The steps taken or proposed to be taken by the Company.

The Company is currently seeking professional legal advice and will make further announcement on any material development on this matter.

The first Case Management is fixed on 16 February 2023 by way of e-Review.

This announcement is dated 18 January 2023.