Pursuant to Paragraph 9.04(g) of the Main Market Listing Requirements of Bursa Malaysia Securities Berhad (“Bursa Malaysia”), Impiana Hotels Berhad ("the Company") wishes to announce that its wholly-owned subsidiary, Impiana Cherating Sdn Bhd (“ICSB” or “Respondent”) had been served an Adjudication Claim from Axventure Sdn Bhd (“Axventure” or “Claimant”).

Particulars of claim and details of the circumstances leading to the Adjudication Claim

This is a claim by Axventure for works done up until year 2020 pursuant to a contract dated 8 October 2018 whereby ICSB had appointed Axventure as the contractor for Phases 1 and 2 of the proposed redevelopment of Impiana Resort & Residences Cherating.

The Claimant sought the following reliefs and/or remedies:

a. Payment of the outstanding sum of RM1,882,180.31, or any such amount deem fit and reasonable by the Adjudicator;
b. A simple interest on the adjudicated amount based on the Maybank Base Lending rate plus one (1) percent between the due date for payment and the date on which payment is finally made;
c. Cost for the preparation of the claim in the amount of RM57,000.00;
d. All other incidental costs in the amount of RM3,000.00;
e. Costs arising from and/or in connection with the adjudication proceedings; and
f. Such further and other reliefs that the Adjudicator may deem fit.

The Director of the Asian International Arbitration Centre (AIAC) had appointed Mr. Ng Kuo Sin as the adjudicator to adjudicate on this matter and he has accepted the appointment.

Steps taken and proposed to be taken by ICSB in respect of the Adjudication Claim

ICSB has engaged legal representation to represent them in this adjudication process. At the same time, ICSB is in discussion and negotiation with Axventure to come to a propose settlement.

Financial and operational impact of the Adjudication Claim

There is no material operational impact arising from the Adjudication Claim and apart from the amount claimed by Axventure and the corresponding legal costs, the Adjudication Claim is not expected to have any other material financial impact on the Company for the financial year ending 30 June 2022.

The Company will make the appropriate announcements to Bursa Malaysia as and when there are material developments in relation thereof.

This announcement is dated 6 January 2022.