Pursuant to Paragraph 9.04(f) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad, the Company wishes to announce the commencement of litigation and the filing a Writ of Summons and Statement of Claim (“Writ”) by Onetexx (“Plaintiff”) against Focus Chemical (“Defendant”) under Civil Suit No. WA-22NCC-647-09/2024 through its solicitors Messrs. Tan Shang Neng. The Writ was filed on 23 September 2024 and served on 27 September 2024.

Pursuant to the Writ, the Plaintiff is seeking for, inter alia, payment of the sums of United States Dollar (“USD”) 853,425.00 (“USD Claim”) and RM79,650.00 (“RM Claim”) and interest thereon as provided in the Writ.

1. The USD Claim

1.1 The USD Claim represents a claim for refund thereof arising from a repudiatory breach of an agreement comprising the Plaintiff’s letter dated 2 August 2021 and an Offset Agreement dated 30 December 2021 (“Agreement”). 

1.2 Pursuant to the Agreement, the Defendant agreed to collect or take return of 450 wet metric tonnes (“MT”) of Nitrile Butadiene Rubber (“NBR”) Series TG701 (“Returned Goods”) and to replace the Returned Goods with new 450MT NBR Series TG701N (“New Goods”). 

1.3 The difference in price between the Returned Goods and the New Goods amounting to USD1,500.00 per MT was to be credited by the Defendant to the Plaintiff by way of credit notes or open credit to be applied against future orders placed by the Plaintiff with the Defendant. The Defendant issued credit notes and open credit of an aggregate amount of USD540,000.00 in respect of part of the Returned Goods.

1.4 By way of a debit note dated 2 March 2022, the Defendant unilaterally, unlawfully and without basis reversed such credit in repudiatory breach of the Agreement.

2. The RM Claim

2.1 The Defendant has failed to replace a balance 89.55 MT of the Returned Goods (“Uncollected Returned Goods”) which remain in the Plaintiff’s possession.  The Plaintiff has incurred and continues to incur costs to store and despite reminders and demands for the Defendant to do so, the Defendant has failed and/or refused to collect or replace the Uncollected Returned Goods. 

2.2 The RM Claim is in respect of costs incurred to store the Uncollected Returned Goods.

Further announcement(s) on material developments in respect of the above will be made to Bursa Malaysia Securities Berhad from time to time.

This announcement is dated 27 September 2024.