(The terms used herein, unless the context otherwise stated, bear the same meaning as those defined in the Company’s announcement made on 11 February 2022 in relation to the acquisition of 806,000 ordinary shares representing 10.0% of the total issued and paid-up share capital of Winstar Aluminium Manufacturing Sdn Bhd.)

The Board of Directors of Mestron wishes to announce the following additional information as requested by Bursa Securities:-

1. The Purchase Price of RM6,000,000 will be entirely settled via cash funded from the private placement exercise undertaken by Mestron which was completed on 30 September 2021. Further, there is no arrangement for payment on deferred basis.

2. WAMSB has been involved in aluminium industry for approximately 22 years since its inception. WAMSB has an existing integrated production facilities including extrusion presses with an average annual production capacity of 5,000 metric tonnes per annum. The Proposed Acquisition is advantageous to Mestron as it would be able to directly source the required aluminium parts for Mestron’s existing solar panel business. Moreover, the Board expects that the Proposed Acquisition will contribute positively to the future earnings of Mestron group given the established business of WAMSB.

3.The total consideration for the call options is RM12,000,000 to be granted in 2 tranches (i.e. Second Tranche Call Option and Third Tranche Call Option).

4. The fair value is based on the net assets of WAMSB as of 31 December 2021 amounting to RM60,000,000. The Purchase Price of RM6,000,000 was arrived at after taking into consideration the net assets of WAMSB of RM60,000,000 as of 31 December 2021 and Mestron’s shareholdings of 10% in WAMSB to be acquired.

5. The aggregate percentage ratio of the Proposed Acquisition is 20.47%.

This announcement is dated 17 February 2022.