The Board of Directors of MYNEWS ("Board") wishes to announce that the Company via its wholly owned subsidiary, MYCU Retail Sdn Bhd (formerly known as Eemerge Incorporated Sdn Bhd)(628407-U)(“MYCU Retail”), has on 12 October 2020, executed the licensing agreement(“Licensing”) with BGF Retail Co., Ltd (“BGF”), South Korea’s biggest convenience store operator and owner of the popular convenience store brand CU.

BGF founded and established the “Korean Style Convenience Store” model that fits the domestic consumption patterns in 2012 and has continued innovations to enhance the quality of customers’ living by bringing new and pleasant experience to customers through the products and services customised to consumers’ lifestyle. Thus, the brand CU representing CVS for U.

CU, one of the leading convenience store brands with more than 15,000 stores in South Korea is expected to be opened in Malaysia in early 2021.

The salient points of Licensing are as follows:

1. Ten (10) years with an additional renewal term of ten (10) years
2. To operate and sub-franchise CU outlets in Malaysia  

By adding CU to our existing retail brands namely, MYNEWS, WH Smith and MYNEWS SuperValue, we are offering Malaysians a new choice and shopping experience from South Korea, which is in line with our core business and passion in retail convenience. The addition of CU will open up new growth opportunities and enhance our capability to meet consumers’ demand. It will also increase the utilisation of our large scale food processing centre as CU is a popular destination for its fresh food offerings.

The risk factors in relation to the Licensing include but not limited to:

1. Business risk – subject to unforeseen circumstances which may affect consumer spending pattern
2. Execution risk – acceptance of the lifestyle brand in Malaysia

The Licensing is not expected to have a significant impact on the financial performance of MYNEWS for the current financial year ending 31 October 2020. The business is expected to contribute positively to MYNEWS in the medium to long term.

None of the Board, its substantial shareholders or persons connected with them have any interest in the Licensing.

This announcement is dated 12 October 2020.