WE DESIGN LOGISTICS

Reference is made to the Company’s earlier announcements dated 27 August 2020, 7 October, 2 November 2020, 19 November 2020, 26 November 2020, 9 December 2020, 29 March 2021 and 9 July 2021 in respect of the material litigation described above (“Previous Announcements”).

For ease of reference, the terms and abbreviations used in the Previous Announcements shall be adopted herein, unless stated otherwise.

The Board of Directors of the Company wishes to announce that CJCT has entered into a settlement with Axisjaya Sdn Bhd (“AJSB”) and Seri Mutiara Development Sdn Bhd (“SMDSB”). In that regard, a Consent Judgment has been recorded before the Court of Appeal panel today 19 August 2021, and AJSB and SMDSB have withdrawn their appeal with no order as to costs.

Pursuant to the Consent Judgment, SMDSB is ordered to pay CJCT the sum of RM100,000.00 on or before 19 August 2021 being the initial payment of the entire judgment sum (“Initial Payment”). The Initial Payment has been paid by SMDSB. The remaining judgment sum amounting to RM2,521,823.91 is to be paid by SMDSB to CJCT in five (5) equal instalments via five (5) post-dated cheques (“Post-dated Cheques”).

A Director of SMDSB, Hoe Tze Fook (“Datuk Benny Hoe”), has executed a personal guarantee, guaranteeing the due performance and obligations of SMDSB under the Consent Judgment.

As the parties have reached a settlement and Consent Judgment has been recorded before the Court of Appeal, AJSB and SMDSB have withdrawn their appeal with no order as to costs. In the event that any of the Post-dated Cheques are dishonoured, CJCT is wholly entitled to proceed with all execution proceedings as CJCT deems fit to enforce the High Court’s order. In addition, CJCT is entitled to enforce the personal guarantee against Datuk Benny Hoe.

This announcement is dated 19 August 2021.