SANICHI TECHNOLOGY BERHAD ("SANICHI" OR "STB" OR "THE COMPANY")
Memorandum of understanding between Sanichi Technology Berhad (STB), PNE PCB Bhd (PNE), AT Systematization Bhd (ATS) and Arzon Solar LLC (ARZ) (MOU)

We refer to your Company’s announcement dated 18 May 2020, in respect of the aforesaid matter.

In this connection, kindly furnish Bursa Securities with the following additional information for public release:-

1. To elaborate further on each parties’ role and responsibilities under the MOU including design, Research and Development, production, testing, and procuring the licenses and certification for distribution and marketing of the product.
2. Whether Sanichi possesses the required expertise, knowhow and resources to carry out the project.
3. The risks in relation to the project that the Company may be exposed to and what are the processes and procedures put in place to mitigate the risks?
4. The manner in which the costs and profits will be distributed between the Parties.
5. Any targeted consumers and whether any contract has been signed?
6. The estimated timeframes of the project including obtaining the necessary licenses and certificates from the authorities [to also name the authorities, both locals and foreign (if any)], produce the medical grade mechanical air ventilators up to distributing and marketing the ventilators globally.  
7. Details of ARZ (e.g. shareholders, board of directors, financials) and how ARZ was identified to be a party to the MOU.
8. The basis and justification for each party’s shareholding in the joint venture company (“JVC”).
9. Your Company’s capital outlay in the JVC, the source(s) of funds for financing the investment in the JVC, and the breakdown.
10. The basis for ARZ’s 10% equity interest to be held in the JVC, and the reason it shall not invest in the form of monetary in the JVC.
11. The rationale for the MOU/JVC.
12. To elaborate on the manner in which ARZ intends to market and distribute the product in Malaysia and globally.

Please ensure consistency in the announcements by your Company, AT Systematization Bhd and PNE PCB Bhd, in particular the salient terms.

Please furnish Bursa Securities with your reply within one (1) market day from the date hereof.

Yours faithfully

Listing

Regulation

Cc : Market Surveillance Dept., Securities Commission (via fax)