2. DETAILS OF THE MOU
2.1 Information on USM
USM, a public institution of higher learning established under the Universities and University Colleges Act, 1971 and having its principal address at Universiti Sains Malaysia, 11800, Pulau Pinang. USM is Malaysias premier public university with research and teaching facilities, experience and a multi-disciplinary team of experts from among its staff members to undertake the creation, development, dissemination and application of knowledge that can contribute towards achieving the Malaysian Governments goal of nation building.
2.2 Objectives of the MOU
The objectives of the MOU are as follows:
i)To assist and support both SFSB and USM (hereinafter referred collectively as Parties and individually as Party ) in the research collaboration on development and pre-commercialisation of a new organic acid blend for enhancement of growth and disease resistance in farmed aquatic animals without the use of antibiotics.
ii) The Parties will endeavour to assist and support each other in any other projects that shall be mutually identified and agreed by both Parties.
iii)This MOU shall form the basis of consensus for the Parties to examine the feasibility of the co-operation until such time when any other manner of agreement is entered into by the Parties upon terms and conditions to be mutually agreed upon.
2.3 Salient Terms of the MOU
i) Duration of the MOU
The MOU is valid from the date of execution by the Parties and shall remain in effect for five (5) years upon the execution of the MOU.
ii) Termination of the MOU
Either Party may terminate the MOU by giving one (1) months written notice to the other Party.
3. RATIONALE
The MOU is expected to enhance the research and development capability of both Parties in developing new aquaculture market.
4. FINANCIAL EFFECTS OF THE MOU
4.1 Share capital and substantial shareholders shareholdings
The MOU will not have any effect on Sunzens issued and paid-up share capital or the substantial shareholders shareholdings in Sunzen.
4.2 Net assets
The MOU will not have a material effect on the consolidated net assets of Sunzen for the financial year ending 31 December 2010.
4.3 Earnings
The MOU is not expected to have any material effect on the consolidated earnings of Sunzen for the financial year ending 31 December 2010. However, it is expected to contribute positively to the earnings of Sunzen in the future financial years.
5. RISK FACTORS
The MOU is subject to normal business risks.
6. DIRECTORS AND MAJOR SHAREHOLDERS INTEREST
None of the Directors and major shareholders of Sunzen or any persons connected to them has any interest, direct or indirect in the MOU.
7. STATEMENT BY DIRECTORS
The Board of Directors of Sunzen, having taken into consideration all aspects of the MOU, is of the opinion that the entering into the MOU is in the best interests of the Company.
8. APPROVALS REQUIRED
The MOU is not subject to the approval of the shareholders of Sunzen or any relevant authorities.
9. DOCUMENT AVAILABLE FOR INSPECTION
The MOU is available for inspection at the registered office of the Company at 10th Floor, Menara Hap Seng, No. 1 & 3, Jalan P. Ramlee, 50250 Kuala Lumpur during normal business hours from Monday to Friday (except public holidays), for a period of one (1) month from the date of this announcement.
This announcement is dated 2 June 2010.