The Board of Directors of PESTECH wishes to announce that the Company had on 13 January 2022 entered into a Memorandum of Understanding (“MoU”) with Green Li-Ion Pte. Ltd. (“GLPL”) in relation to a Proposed Collaboration of exploring possibilities in the Lithium-Ion battery recycling activities and businesses (“Collaboration”).

(PESTECH and GLPL are hereinafter referred to either as “Party” or “Parties”)

Information on PESTECH

PESTECH is a Malaysian integrated electrical power technology company operating in the ASEAN region. PESTECH provides solutions in project management, engineering, digitalization, manufacturing, installation, testing and commissioning of electrical power infrastructure for sustainable power generation plants, power grid and rail network.

Information on GLPL

GLPL is a Singapore-based company that provides proprietary solution for increasing the efficiency and profitability of rechargeable battery recycling and has developed the patented multi-cathode processor, GLMC-1, which recycles spent lithium-ion batteries (“LION Batteries”) directly into 99.9% pure cathodes, speeding up the current recycling process at a lower cost.  (PCT International Application number:  PCT/SG2021/050496)

Conventional recycling methods do not adequately handle the recycling of different types of LION batteries cathode materials and fail to sufficiently address the extraction of other metals. The GLMC-1 removes impurities of iron, copper, fluorine, phosphorous, titanium and aluminium when recycling the LION Batteries.  Thus, enabling better yield and efficiency.

The GLMC-1 increases the efficiency by over 200% by having the ability to process all variations of LION Batteries and the mechanical and chemical processing control system produces better output which could fully rejuvenate LION Batteries.

Rationale for the MoU

Under the MoU, the Parties shall co-operate jointly in the promulgation of LION Batteries recycling activities and businesses in the region of Malaysia and Cambodia (“Region”).  PESTECH will conduct the necessary due diligence on the technical and financial viability of the GLMC-1 LION Batteries recycling solutions, and if found feasible, proceed further with the execution of an exclusive affirmative collaboration agreement for the Region with GLPL for the establishment of a LION Batteries recycling facility.

Salient Terms of the MoU

1. The parties agreed to nominate its own representative to work towards implementing the intention of the MoU and explore further on the possibilities of the LION battery recycling activities or businesses by utilising its network and know how.

2.  No Party will have any rights, power or authority to enter into any agreement of commitment, act on behalf of, or otherwise bind the other Parties in any way until a definitive agreement has been executed between the Parties.

3. The MoU will come into effect on the date of signing of the MoU and will remain in effect for on one (1) year from the effective date (“Validity Period”). The MoU can be extended by giving each Party a written notice not less than three (3) months prior to the expiry of the Validity Period. The MoU may be terminated by either Party at any time within the Validity Period by giving ninety (90) days’ notice in writing to the other Party.

Effects of the MoU

The MoU will have no material effect on earnings, revenue and net assets per share of the Group for the financial year ending 30 June 2022 but is expected to contribute positively to the future earnings of PESTECH Group, if the Collaboration between the Parties is successful.

Directors’ and Major Shareholders’ interests

None of the Directors and/or Major Shareholders and/or persons connected to them, has any interest, direct or indirect in the MoU.

The Board of Directors of PESTECH is of the opinion that the MoU is in the best interest of the Company.

Approval required

The MoU is not subject to the approval of the shareholders of the Company or any regulatory authorities.

This announcement is dated 13 January 2022.