On behalf of the Board of Directors of RedPlanet (“Board”), Sierac Corporate Advisers Sdn Bhd (“SCA”) wishes to announce that the Company is proposing to provide financial assistance to AZTI Engineering. AZTI Engineering is a wholly-owned subsidiary of AZTI Technology Sdn Bhd (“ATSB”) and is, in turn, a 51% indirectly owned subsidiary of RedPlanet.

The Proposed Provision of Financial Assistance shall be in the form of:

1. a corporate guarantee of up to RM16.0 million by the Company and ATSB respectively as securities for the banking facilities of RM16.0 million offered by Malayan Banking Berhad (“Bank”) pursuant to a conditional bank offer letter dated 29 February 2024 to AZTI Engineering (“Corporate Guarantee 1”). The banking facilities is for the financing of the Light-Rail Transit (“LRT”) 3 Project (“LRT3 Project”) and Kelana Jaya Line Project (“KJL Project”) awarded to AZTI Engineering;
    
2. an additional general corporate guarantee up to RM10.0 million by the Company for the banking facilities to be obtained by AZTI Engineering from a licensed financial institution based in Malaysia (“Corporate Guarantee 2”) in respect of a new potential railway project; and
   
   Corporate Guarantee 1 and Corporate Guarantee 2 are collectively known as (“Corporate Guarantees”).
    
3. an advance by RedPlanet Solutions of up to RM5.0 million in cash (“Advances”), which will be utilised by AZTI Engineering to meet its working capital requirement for the LRT3 and KJL Project.

For avoidance of doubt, on top of the banking facilities to be obtained as mentioned above, AZTI Engineering envisages an additional funding requirement of up to RM9.8 million to meet its working capital requirement. The Advances provided is proportionate to RedPlanet’s 51% equity interest held in ATSB. For information, the Advances will be funded via RedPlanet Solutions’s internally generated funds.

The provision of Corporate Guarantees and Advances by RedPlanet and its wholly-owned subsidiary, RedPlanet Solutions to AZTI Engineering is deemed to be a provision of financial assistance pursuant to Rule 7.02(d) of the LEAP Market Listing Requirements (“Listing Requirements”) of Bursa Malaysia Securities Berhad (“Bursa Securities”).

Pursuant to Rule 7.06 of the Listing Requirements, the Proposed Provision of Financial Assistance is deemed a related party transaction (“RPT”) in view of the interests of the Interested Parties (defined in the announcement).

Details of the Proposed Provision of Financial Assistance are set out in the attachment enclosed.

This announcement is dated 9 April 2023.