SMTrack Berhad had on 8 March 2024 entered into a Heads of Agreement with Straits Millenium Sdn. Bhd. to enter into a joint venture by incorporate a new private limited company as the special purpose vehicle for the proposal of Empowering Malaysia's Rural Community Centers - Through Rural Digital Economy Under the Smart Village Program (the Project).

Salient Terms Of The HOA: Conditions precedent: The Agreement is subject to the following conditions precedent: the approval and consent of the relevant authorities and in the case of SMT, the approval of its Board of Directors, shareholders, and Bursa Securities to enter into the Agreement (if applicable); Completion of the due diligence investigations on SMSB and the Project to the satisfaction of SMT, particularly with respect to rights, obligations and entitlement in relation the Project within three months from the Execution Date; Completion of the due diligence investigations on SMT, particularly with respect to the financial and regulatory aspects of entering and performing the Project within three months from the Execution Date; Receipt by SMT of all relevant documents in relation to the Project; Receipt by the Parties the certified true copies of board of directors' resolution authorizing the execution of the Agreement of the other party; and Receipt by the SPV the Award which the terms and conditions of the Award shall be acceptable to the Parties. The Parties hereto undertake to use their best endeavours to fulfil the conditions precedent within three months from the Execution Date. In the event that the conditions precedent have not been fulfilled within the aforesaid period of three months, the Parties may mutually agree in writing to an extension for a further period of three months.

In the event that the conditions precedent have not been fulfilled within the aforesaid period of three months or such further period if agreed to by the Parties and or are rejected or withdrawn by the Relevant Authorities, this Agreement shall ipso facto cease and determine and (save in respect of any antecedent breach by either of the Parties and as provided in Clause 3.2) neither Party shall have any claim against the other for costs, damages, compensation or otherwise.