On behalf of the Board of Directors of Silver Ridge Holdings Berhad (“Company”), we wish to announce that the Company had on 13 August 2020 received a query from Bursa Malaysia Securities Berhad for additional information in respect of the announcement made on 11 August 2020 pertaining to the material litigation:-

1.  The particulars of the claim under Suit 362, including the amount claimed for, interest rate and other relief sought are as follows :

The Company (Plaintiff) had initiated Suit 362 against Jonathan Chong Teik Cheh (“Jonathan”) & 28 Ors (Defendents) premised on the claims of fraudulent misrepresentations, breach of fiduciary duties and conspiracy to injure the Company by unlawful means.

In Suit 362, Silver Ridge had prayed for the following reliefs and/or orders:

(a)  A declaration that the 1st to 5th Defendants had jointly and/or severally fraudulently misrepresented the Plaintiff;

(b)  A declaration that the placement of 12,387,300 ordinary shares of the Plaintiff to the 1st Defendant under the private placement exercise is rescinded on fraudulent misrepresentation by the 1st to 5th Defendants;

(c)  A declaration that the 1st Defendant is not the legal and beneficial owner of 12,387,300 ordinary shares of the Plaintiff that were allotted to the 1st Defendant under the Private Placement exercise;

(d)  A declaration that the 5th Defendant is liable to the Plaintiff for breach of fiduciary duty;

(e)  A declaration that the 1st to 5th Defendants are jointly and/or severally liable to the Plaintiff for conspiracy by unlawful means to injure the Plaintiff;

(f)  A declaration that the 1st Defendant together with the 6th to 29th Defendants are jointly and/or severally liable to the Plaintiff for conspiracy by unlawful means to injure the Plaintiff;

(g)  An order that the 1st Defendant to transfer the placement shares of 12,387,300 to the Plaintiff at the placement price of RM0.227 to be placed by the Plaintiff as Treasury Shares of the Plaintiff;

(h)  An order that the Plaintiff to pay the 1st Defendant in the sum of RM2,811,917.10 for the transfer of the placement shares of 12,387,300 to the Plaintiff and be placed by Plaintiff as Treasury Shares;

(i)  An order that the 5th Defendant to compensate the Plaintiff for its breach of fiduciary duty;

(j)  General damages to be assessed by the Honourable Court;

(k)  Exemplary damages to be assessed by the Honourable Court;

(l)  Interest at 5% per annum on all sums payable by the Defendants to the Plaintiff from the date of the Order of the Honourable Court until full settlement;

(m)  Costs; and

(n)  Such further and/or other relief as this Honourable Court deems fit.

There is no specific amount claimed by Silver Ridge in Suit 362 as damages (together with interest) sought by the Company are to be assessed by the High Court.

2.  The details of events leading to commencement of Suit 362 are as follows :-

In 2018, the Company undertook a private placement exercise (‘Private Placement’). At all material times, the Company had identified Yayasan Pembangunan Agrotani Malaysia (“YPAM”) as the placee. It was represented to the Company that Jonathan is the nominee of YPAM to take up the placement shares pursuant to the Private Placement exercise. However, in June 2020, the Company had discovered that Jonathan is not the person that the Company was represented him to be. In light of the discovery, the Board of Directors had decided to commence Suit 362 against Jonathan and 28 others.

3.  The estimated potential liability to Silver Ridge Holdings Bhd and its subsidiaries (“Group”) arising from Suit 362 :

There is no expected immediate potential financial liabilities to the Group as the said litigation are its preliminary stages of deliberations in the High Court. However, the Board expects to incur legal fees and related expenses in commencing Suit 362, which sum shall be financed through the Company's internally generated sources.

4.  The financial and operational impact to the Group arising from Suit 362:

The Board is of the view that the financial impact to the group's finances shall be limited to the amount being spent on the expenses as mentioned in paragraph 3 above as those sum shall be expensed out to the profit and loss accounts during the Group's results for its financial year end year ending 30 June 2021 and that there would be no operational impact to the Group.

The said Suit 362 is fixed for Case Management at the KL High Court on 25 August 2020.

The Company shall make further announcement accordingly, if any, and as required in due course.

This announcement is dated 14 August 2020.