The Board of Directors of SGB wishes to announce that its wholly-owned subsidiary, Solution E&E Technology Sdn Bhd (“Solution E&E”) had on 21 August 2019 (duly signed copies received on 23 August 2019), entered into 2 separate sale and purchase agreements (“SPA(s)”) with Malaysian Bio-Xcell Sdn Bhd (“BXL”) in relation to the following:

1. Proposed acquisition of a portion of a freehold land held under HSD 479585, PTD 171839, Mukim Pulai, Daerah Johor Bahru, Negeri Johor measuring approximately 6.82 acres (“Land”) upon which is erected with a partially completed Verdepalm Plant (as defined hereunder) erected thereon for a cash consideration of RM18.00 million (“Proposed Land Acquisition”); and
2. Proposed acquisition of machinery and equipment located on the Land for a cash consideration of RM7.00 million (“Proposed Machinery Acquisition”)

(Collectively, referred as the “Proposed Acquisitions”)

Upon completion of the Proposed Acquisitions, the Company intends to make further investment to complete the construction of the bio-manufacturing plant and thereafter venture into the business of the production of lactic acid. In relation thereto and pursuant to Rule 10.13 of the ACE Market Listing Requirement of Bursa Malaysia Securities Berhad (“Bursa Securities”) (“Listing Requirement”), the Company wishes to diversify its existing businesses to include the production of lactic acid in view of the future profits to be derived from the said business (“Proposed Diversification”).

Please refer to the attachment for further information.

This announcement is dated 23 August 2019.