Optimax announced that Optimax has on 30 May 2022 entered into a Memorandum of Understanding with Sena and Kesh, in relation to the construction by Sena of a `purpose built' private eye hospital on the Land which is owned by Sena, and to rent the Land and Eye Hospital to Optimax or any of its subsidiaries. Sena was incorporated in Malaysia under the Companies Act 2016 and having its registered address at No. 55A, Jalan Gunung Lambak 1, Taman Gunung Lambak, 86000 Kluang, Johor.

Sena is a wholly-owned subsidiary of Sena Letrik (M) Sdn. Bhd. which is principally engaged in general contract works.

Sena is the legal and registered owner of all that piece of freehold land known as Geran Mukim 574, Lot 1801, Mukim Tebrau, Daerah Johor Bahru, Negeri Johor Darul Takzim. The Land is located within a busy suburb of Johor Bahru, Malaysia, and is in close proximity to the metropolitan areas of Johor Bahru and Singapore. The pre-establishment approval has been obtained on 4 February 2022 from the Ministry of Health, Malaysia by Kesh.

Sena, Kesh and Optimax are related parties through a common director and/or ultimate shareholder, i.e. Tan Sri Dato' (Dr.) Tan Boon Hock, his spouse, Puan Sri Datin Lim Sho Hoo and their children, Tan Sing Yee and Tan Sing Chia. The Parties are desirous of working with each other whereby Sena is to construct the Eye Hospital on the Land for eye specialist services and related products and thereafter Sena is to rent the Land and Eye Hospital to Optimax or any of its subsidiaries. Sena shall be responsible: to determine the layout and design of the Eye Hospital (proposed built-up area: 3,170 square metres); to estimate the cost of construction of the Eye Hospital, which the cost of construction will be entirely borne by Sena; to rent the Eye Hospital at a minimum tenure to Optimax subject to other commercial terms for the rental of the Land and Eye Hospital; all of which are to be mutually agreed upon by the Parties.

Optimax shall be responsible to procure the medical/specialist equipment and disposable items required for the operation of a full-service eye specialist centre at the Eye Hospital. The MOU shall come into effect upon its execution by the Parties and shall be effective for a period of twelve months from the effective date stated in the MOU and may be extended upon the mutual agreement of the Parties. The MOU shall be terminated immediately by either Party upon the occurrence of any of the termination events as stated in the MOU.

The MOU shall be terminated upon the earliest occurrence of any of the following events: the Parties mutually agree in writing to terminate, revoke or withdraw the MOU; upon the execution of the definitive agreement(s) stated in Clause 1.3 of the MOU; or upon the expiry of the twelve months period from the effective date of the MOU, or upon the expiry of the extended period, as the case may be. Upon termination, none of the Parties shall have any liability towards the other Party for any and all losses or damages arising from the MOU. The execution of the MOU is to allow the Parties to finalise and agree on the commercial terms as set out in Section 3 above and for the Parties to enter into the necessary definitive agreement(s) which, upon completion of the construction and licensing requirement, will enable Optimax to operate the Eye Hospital and expand its services within the southern region area of Peninsular Malaysia.

Optimax is expected to leverage on its existing ambulatory care centre(s) and satellite clinic(s) which are currently located in Segamat, Kluang, Muar and Johor Bahru for referral and to provide specialist services to customers and patients at the Eye Hospital for treatment and follow-ups. Upon becoming operational, envisage the Eye Hospital will also be able to capture and cater for the expected increase in demand for eye treatment services from neighbouring countries such as Singapore and Indonesia. In addition, the Eye Hospital may potentially receive an increase of demand for eye treatment services after the Johor Bahru­Singapore Rapid Transit System is built and becomes operational in due course which is expected to improve the travelling convenience for prospective patients from Singapore to seek treatment in Johor, Malaysia.