The Board of Directors of EKA wishes to announce that Bersatu Sago Industries (Mukah) Sdn. Bhd. (“BSIM”), a wholly-owned subsidiary of the Company has, on 09 October 2019 received a Notice of Demand (“Notice”).

T.E.M. Engineering (Penang) Sdn. Bhd. (“TEM”) through a firm of lawyers acting on its behalf demanded for full payment of the amount owing to TEM of RM8,870.00 for various of goods and materials supplied to BSIM together with the interest at 1.5% per month calculated from 02 September 2019 to the date of full settlement thereof and RM100.00 as costs in relation to the notice within 7 days from 09 October 2019, failing which TEM would commence legal proceedings against BSIM without further notice inclusive to winding up BSIM and BSIM shall also be liable to pay all legal costs and expenses incurred thereof.

BSIM is exposed to the above claims and legal costs as stated above and the Company would be contacting TEM to discuss on the above matter.

The above will not have any financial or operational impact on the Group.

This announcement is dated 09 October 2019.