Mlabs Research Sdn. Bhd. had on 19 November 2020 entered into a Digital Distribution Agreement with mTouche International Sdn. Bhd. to promote, market, and distribute Novel Coronavirus (SAR-CoV-2) RP-PCR Detection and Diagnostic kit and Novel Coronavirus (SAR-CoV-2) lgM/lgG Rapid Test Kit, and other equivalent products in Malaysia through MLABS digital distribution channel. MLABS will utilize the existing collaboration partner, iPharmacare (Malaysia) Sdn. Bhd.'s Online Pharmaceutical Platform as the main channel to promote, market, and distribute the Novel Coronavirus (SAR-CoV-2) RP-PCR Detection and Diagnostic kit and Novel Coronavirus (SAR-CoV-2) lgM/lgG Rapid Test Kit to Ministry of Health, Malaysia (MoH) recognized public and private pathology laboratory/hospital. The Agreement is for a period of one (1) year, commencing on and from 19 November 2020, renewable thereafter for successive one (1) year unless otherwise mutually extended or terminated. Either party may terminate the Agreement upon delivery of written notice at least 30 days prior to such termination. Similar to all business entities, the risk factors affecting the execution of the Agreement, including but not limited to business risks such as prudent financial management, changes in political, economic and regulatory conditions. However, the Board of MLABS and MTOUCHE will continue to exercise due care in considering the risks associated with the Agreement and will take appropriate measures in planning the successful execution of the Agreement. The Agreement being incurred in the ordinary course of business, is not subject to the approval of the shareholders of MLABS and MTOUCHE.