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1 INTRODUCTION
Pentamaster Corporation Berhad (Pentamaster) wishes to announce that it has signed two "Exclusive Manufacturing of Machines Derived from Intellectual Property and Supply Agreements" (the Agreements) with EcoGlove Limited (EcoGlove), a company incorporated in Hong Kong, on 11 June 2007 and 2 November 2007 respectively, to design and manufacture Glove Reprocessing Machines for EcoGlove.
2 MAIN FEATURES OF THE AGREEMENTS
Pentamaster is an integrated consulting and automation engineering technology solutions provider and EcoGlove is a developer and supplier of systems for reconditioning, tracking and testing reusable gloves.
Through the Agreements, Pentamaster has secured the exclusive rights to design and manufacture for EcoGlove the following machines (collectively referred to as the "Machines") -
(a) Up to 600 units of Glove Reprocessing Machines ; and
(b) Up to 600 units of Auto Glove Loading Machines.
Instead of a cash license fee payment and in order to acquire and pay the exclusive manufacturing licence rights from EcoGlove, Pentamaster agrees to produce -
(a) The first prototyping, construction and calibration of these Machines ; and
(b) The two first pre-serial Machines for the purpose of pilot project.
Notwithstanding the binding commitment to deliver the total units of Machines under the Agreements, the actual units to be manufactured by Pentamaster and supplied to EcoGlove is dependent on the actual units ordered by EcoGlove during the validity period of the Agreements.
The Agreements becomes effective at the date of execution and shall remain in force for EcoGlove to purchase and Pentamaster to supply the Machines, within 3 years from the date of the Agreements or earlier timeframe whichever comes first.
3 RATIONALE
The Agreements will enable Pentamaster to leverage on its existing core technology competencies to diversify its range of automated machines as well as a platform for market penetration into the medical glove equipment industry.
4 FINANCIAL EFFECTS
The Agreements are not expected to have any material effect on the earnings of Pentamaster Group nor will it have any material impact on the net tangible assets of Pentamaster Group for the financial year ending 31 December 2008.
5 DIRECTORS' AND MAJOR SHAREHOLDERS' INTERESTS
None of the Directors and/or major shareholders of Pentamaster and/or persons connected to them have any interest, direct or indirect, in the Agreements.
6 STATEMENT BY DIRECTORS
The Directors are of the opinion that the Agreements are in the best interest of Pentamaster Group.
7 APPROVALS REQUIRED
The Agreements do not require the approval from the shareholders or from any other relevant governmental authorities.
8 CURRENT STATUS
As at 3 May 2008, Pentamaster has produced the first prototype Machine and the two first pre-serial Machines for EcoGlove. Pentamaster has also received Purchase Order amounting to USD300,000 for the delivery of 3 units of Machines from EcoGlove.
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