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 today, 6 March 2023 been served a Statement of Claim and Writ of Summons dated 23 February 2023 and 28 February 2023 respectively by Comone International Logistics Co Limited (“Plaintiff”).

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

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

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

(a) a sum of USD120,000.00 and/or a sum of RM540,840.00 at the exchange rate from USD1.00 to RM4.5070 based on the foreign exchange rate fixed by Malayan Banking Berhad on 23 February 2023;

(b) a sum of USD49,900.00 and/or a sum of RM224,899.30 at the exchange rate from USD1.00 to RM4.5070 based on the foreign exchange rate fixed by Malayan Banking Berhad on 23 February 2023;

(c) liquidated damages of RM10,000.00;

(d) interests on the sum of USD120,000.00 and/or a sum of RM540,840.00 at the rate of 5% per annum from 13 December 2022 until full and final settlement;

(e) interests on the sum of USD49,900.00 and/or a sum of RM224,899.30 at the rate of 5% per annum from 13 December 2022 until full and final settlement;

(f) interests at the rate of 5% per annum on the judgement sum from the date of judgment until full and final settlement;

(g) costs; and

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

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

MJets fails to make the full payment towards the monthly repayment instalments agreed by the Plaintiff as full and final settlement of the claim for the cancellation of the proposed joint venture agreement by the previous management in year 2020 before MJets was a subsidiary of MMAG.  

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 Statement of Claim and Writ of Summons 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 10 March 2023 by way of e-Review.

This announcement is dated 6 March 2023.