INTRODUCTION

The Board of Directors of Bioalpha Holdings Berhad (“Bioalpha” or “the Company”) wishes to announce that its wholly-owned subsidiary, Bioalpha International Sdn. Bhd. (“BISB”) had on 17 September 2020 entered into a Collaborative Agreement (“CA”) with CME Health Sdn Bhd (“CME Health”) for BISB to develop, manufacture and supply health food supplement that aims to improve overall immunity and strengthen respiratory systems (“Products”) for CME Health to market exclusively in the South East Asia region.

INFORMATION ON CME HEALTH

CME Health is incorporated in Malaysia and its intended activities are carrying on buying, selling, distributing and dealing in biological development and pharmaceutical products. It is a wholly-owned subsidiary of CME Group Berhad, a company listed on Main Market of Bursa Malaysia Securities Berhad.

SALIENT TERMS OF THE CA

Pursuant to the CA, BISB will act as the product development partner and exclusive sole manufacturer of CME Health to produce the Products for a period of 5 years from the date beginning on the CA and CME Health shall maintain the right to extend the CA for a further 5 years subject to mutual agreement from both parties. CME Health will be given the exclusive rights to market, sell, promote and distribute the Products in South East Asia region. The responsibilities of CME Health shall be amongst others, to market and commercialise the Product within South East Asia region as stated by the exclusive rights provided.

RATIONALE

The CA being incurred is part of the ordinary course of business.

INTERESTS OF DIRECTORS AND/OR SUBSTANTIAL SHAREHOLDERS AND/OR PERSON CONNECTED THEM

None of the Directors nor major shareholders of Bioalpha, or persons connected with them, has any interest, direct or indirect, in the CA.

FINANCIAL EFFECTS

The CA will not have any effect on the issued share capital and the substantial shareholders’ shareholdings in Bioalpha as the CA does not involve any issuance of new shares of Bioalpha. It is also not expected to have material effect on the net assets and gearing of Bioalpha Group for the financial year ending 31 December 2020.

APPROVAL REQUIRED

The CA is not subject to the approval of the shareholders of Bioalpha or any regulatory authorities.

STATEMENT BY BOARD OF DIRECTORS

The Board of Director of Bioalpha, having taken into consideration all aspects of the CA is of the opinion that the CA is in the best interest of Bioalpha Group.

This announcement is dated 18 September 2020.