General Announcement::Receipt of Letter of Demand

AGV GROUP LIMITED

(Company Registration No. 201536566H)

(Incorporated in the Republic of Singapore on 2 October 2015)

RECEIPT OF LETTER OF DEMAND

1. INTRODUCTION

1.1. The Board of Directors of AGV Group Limited (the "Company" and together with its subsidiaries, the "Group") refers to:

1. the announcement made by the Company on 8 October 2021 in relation to the proposed placement (the "7 Oct Proposed Placement") of 200,000,000 new ordinary shares in the capital of the Company at the issue price of S$0.0072 for each new ordinary share (the "8 Oct Announcement");
2. the announcement ref. no. SG211123OTHR3XK2 made by the Company on 23 November 2021 in relation to the termination of the 7 Oct Proposed Placement (the
   "Termination of Proposed Placement Announcement"); and
3. the announcement made by the Company on 2 December 2021 in relation to the receipt of letters of demand from solicitors acting on behalf of Mr Alvin Poh Hsien Yang and solicitors acting on behalf of Mr Lim Kim Cheei (the "Receipt of 1 Dec Letters of Demand Announcement"),

(collectively, the "Relevant Past Announcements"). Unless otherwise defined herein, capitalised terms used in this announcement shall have the meanings ascribed to them in the Relevant Past Announcements.

1.2. The Board wishes to announce that the Company had on 10 December 2021, received a letter of demand from solicitors acting on behalf of the 7 Oct Placees and the 7 Oct Placees Representative (the "10 Dec Letter of Demand"), in relation to the Placement Agreements and the agreement dated 7 October 2021 between the Company and the 7 Oct Placees Representative relating to the introducer fee for the 7 Oct Proposed Placement (the "Introducer Agreement").

2. SALIENT POINTS OF LETTER OF DEMAND

1. The salient points of the 10 Dec Letter of Demand are set out below:
2. 1. It was claimed that, as a result of the Company's breach of the Placement Agreements and the Introducer Agreement, the 7 Oct Placees and the 7 Oct Placees Representative had suffered damages amounting to approximately S$686,038.78, comprising, amongst others, the introducer's fees, cost of funds, legal fees and loss of profits.
   2. It was demanded that the Company pay such amount to the solicitors acting on behalf of the 7 Oct Placees and the 7 Oct Placees Representative within 7 days of the receipt of the 10 Dec Letter of Demand, failing which, the 7 Oct Placees and the 7 Oct Placees Representative may take such action as to preserve, protect and enforce their rights without reference or notice to the Company.
3. The Company is currently seeking legal advice on its position vis-à-vis the 10 Dec Letter of Demand, and will make announcements on the same as and when there are any further material developments.

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3. UPDATE TO RECEIPT OF 1 DEC LETTERS OF DEMAND ANNOUNCEMENT

1. Further to the Receipt of 1 Dec Letters of Demand Announcement, the Board also wishes to update that the Company is still in the midst of negotiating and/or seeking legal advice (as the case may be) in relation to the First Letter of Demand and the Second Letter of Demand respectively.
2. Trading in the Company's securities on the SGX-ST had been voluntarily suspended by the Company on 24 November 2021.

BY ORDER OF THE BOARD

Chong Kwang Shih

Lead Independent Director

AGV Group Limited

13 December 2021

This announcement has been prepared by the Company and its contents have been reviewed by the Company's Sponsor, Hong Leong Finance Limited. It has not been examined or approved by the Exchange and the Exchange assumes no responsibility for the contents of this announcement, including the correctness of any of the statements or opinions made, or reports contained in this announcement.

The contact person for the Sponsor is Mr Kaeson Chui, Vice President, at 16 Raffles Quay, #01-05 Hong Leong Building, Singapore 048581, Telephone [phone].

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