ComPUTER FORMS (Malaysia) Berhad announced that the terms under the Joint Venture Agreement that were not fulfilled by CFM that resulted in EA Mobility Holding Co Ltd. to exercise the put option. CFM is unable to fulfill the affirmed orders of electric vehicle products and the cash payments of the deposit or purchase price of such affirmed orders. The strike price applicable to the put option that CFM will pay EA Mobility Holding for selling back the shares in the joint venture company to CFM.

CFM will pay EA mobility Holding MYR 50.00 for a put option with a strike price of MYR 1.00 per share, covering a total of 50 ordinary shares, the same price as they purchased previously. The status of the Joint Venture Agreement between CFM and EA Mobility Holding arising from the exercise of the put option by EA Mobility Holding and whether the said agreement is deemed terminated. The Joint Venture Agreement remains in effect, and the day-to-day operations, as well as the business activities of the JVCO have continued without any disruptions.

The Management of the Company has been diligently evaluating the situation. The JVCO has commenced its operations and is actively pursuing orders to fulfill its customers' needs and meet their demands. Energy Absolute is dedicated to maintaining business as usual and ensuring a smooth continuation of day-to-day operations.

There is no financial and operational impact to CFM Group as at the date of this announcement in view that the option closing date is 10 August 2023 and the Joint Venture Agreement remains in effect. In the event that EA Mobility Holding ceases to be the joint venture partner, CFM remains resolute in its commitment to sustain its operations and actively pursue growth opportunities in the electric vehicle industry.