Unless otherwise defined, the abbreviated terms used herein shall be the same as those used in the earlier announcements in relation to the Proposals.

Reference is made to the Company’s announcement dated 30 October 2020 in relation to the Proposals. On behalf of the Board, M&A wishes to announce the following additional information with regards to the Proposals.

1. The commencement date of production of Duramitt Sdn Bhd (“Duramitt”)’s medical examination glove production lines.

Duramitt will install & commission 2 single former nitrile examination glove production lines by early 2021 and another 2 double former nitrile examination gloves production lines by the second quarter of 2021. As such, production is expected to commence in the first quarter of 2021.

2. The regulatory approvals/permits/licenses required to venture into the production and sale of medical examination glove, the dates on which they were obtained or will applied for.

Duramitt has obtained the requisite business license on 28 August 2020, manufacturing license from the Ministry of International Trade and Industry on 12 February 2014, customs license on 22 January 2019, and Malaysian Rubber Board license on 1 April 2020. The relevant approvals from the Ministry of Health will be sought in due course.

3.  Proposed utilisation by Duramitt of the total proceeds of RM30 million to be raised from the Proposed Investment.

RM18 million will be used for the purchase, installation & commissioning of 2 single former nitrile examination glove production lines at the current factory in Kulim, Kedah, and the balance RM12 million will be used as working capital for Duramitt.

4. The date on which Duramitt commenced business.

Duramitt commenced its industrial and specialised glove manufacturing and trading business since 12 May 2000.

5. The terms of payment by Paragon Spectrum Sdn Bhd (“PSSB”) of the Share Subscription Consideration.

The Share Subscription Consideration shall be paid in one lump sum by PSSB to Duramitt within 7 days after the Completion Date, which falls within 30 days after all the conditions precedent of the Share Sale and Subscription Agreement have been fulfilled. The Share Subscription Consideration will be funded by equity capital funds and/or shareholders’ advances which will be contributed proportionately by the shareholders of PSSB in proportion to their respective shareholdings.

6. To quantify the amount of the total consideration for the Purchase Consideration, Share Subscription Consideration and RPS Subscription Consideration to be contributed by DGSB, the sources of funding and the breakdown.

The total sums to be contributed by DGSB based on its 60% shareholding in PSSB is RM24 million. This will be funded by the internally generated funds, equity fundraising and/or bank borrowings of DGSB, the proportions of which will be determined at a later date after taking into consideration of DGSB’s gearing level, interest costs and cash reserves.

7. The markets for the medical examination gloves to be produced by Duramitt.

The markets for the gloves to be produced by Duramitt include the medical, services, hospitality, manufacturing and engineering industries.

This announcement is dated 4 November 2020.