The Board of Directors of Malaysia Pacific Corporation Berhad announced that the Company had on 17 August 2022 entered into a memorandum of understanding ("MOU") with Windsor Aims Machinery Sdn. Bhd. ("Windsor Aims") to negotiate in good faith with a view of entering into a Joint Collaboration Agreement ("JCA") or any other agreements for the implementation of the Proposed Regularisation Plan (as defined herein).

The proposed regularisation plan would involve, inter-alia, proposed capital reduction, proposed debt equity conversion; proposed shares issuance and proposed rights issue ("Proposed Regularisation Plan"). The MOU is not intended to be a legally binding agreement and is meant only to serve as a statement of intention of the Parties to the MOU. The MOU sets out the intention of the Parties to negotiate in good faith with a view of entering into a JCA or any other agreements for the implementation of the Proposed Regularisation Plan.

The Parties agree that this MOU shall not be tantamount to a disposal and transfer of its assets/business of Windsor Aims or MPCB. The salient terms of the MOU are set out below: The Parties hereby agree and shall provide all such information and documents as may be required by either Party hereto and their appointed advisers for the purposes of conducting a thorough legal and financial due diligence on their assets and business; With effect from the date of execution of the MOU, the Parties have agreed to co-operate exclusively with each other with respect to the Proposed Regularisation Plan. The MOU shall be terminated and ceased to have effect upon execution of the JCA or any other agreements, unless terminated earlier in writing by either Party hereto; The MOU shall become effective for a period of six (6) months from the date of the MOU, during which the JCA or any other agreements in relation to the Proposed Regularisation Plan will be finalised and executed.

The MOU allows the Parties to negotiate exclusively for at least a period of six (6) months and sets out the understanding and intention in respect of the Proposed Regularisation Plan.