Bursa Announcements

We refer to the previous announcement dated 22 February 2023 in relation to the Proposed Acquisition and Proposed Sublease and the announcement dated 16 May 2023 in relation to the termination of the CSPA and Sublease Agreement ("Announcements"). Unless otherwise defined, the definitions set out in the Announcements shall apply herein.

The Board of Directors of MBGB wishes to announce additional information in relation to the termination of the CSPA and Sublease Agreement (“Termination”):

1. INTENTION TO PURSUE LEGAL ACTION

Further to the foreclosure proceedings by the existing chargee of the CL Properties and NT Properties and in view that most of the conditions precedent to the CSPA and Sublease Agreement have not been fulfilled by the respective parties, MBGB Group does not intend to seek any legal recourse pursuant to the Termination.

2. FINANCIAL IMPACT OF THE TERMINATION TO THE COMPANY

FBO is awaiting for the refund of deposits paid under the CSPA and Sublease Agreement which is held by the Vendor’s and Sublessor’s solicitors as stakeholders and MBGB Group is expected to incur expenses of approximately RM50,000.00 only for the financial year ending 30 June 2023, being the professional fees paid in relation to the Proposed Acquisition and Proposed Sublease.

As such, the Termination is not expected to have a material impact on the NA and the earnings of MBGB Group for the financial year ending 30 June 2023.

This Announcement is dated 17 May 2023.