We refer to the announcement dated 11 February 2022 and the query letter from Bursa Malaysia Securities Berhad dated 14 February 2022 in relation to the subject matter. Unless otherwise stated, the terms used throughout this announcement shall have the same meanings as defined in the earlier announcement made.

The Company wishes to furnish the following additional information:-

1. The date of filing of the Writ of Summons and Statement of Claim by Trumpet International Sdn Bhd (“Plaintiff”) and the date on which they were served against the Defendant.

The Plaintiff had filed the Writ of Summons and Statement of Claim on 25 January 2022 and served the sealed Writ of Summons and Statement of Claim against the Defendant on 8 February 2022 (the attempt was not successful as the Defendant had changed its address) and 14 February 2022.

2. The details of events leading to the commencement of Litigation.

The Defendant was trading as the sole proprietor of Soul Nines Production (Business Registration No. 201603255991 (002570178-K)). Soul Nines Production is principally involved in production house business specializing in music production, event organisation, concert production and related businesses.

The Plaintiff entered into the Collaboration Agreement dated 18 September 2019 (“Agreement”) with Soul Nines Production to regulate parties’ collaboration with respect to the 9 concerts as set out under the Agreement. The Defendant had breached the Agreement by defaulting in paying the sums in accordance with the payment milestones set out in the Agreement. Therefore, the Plaintiff initiated the litigation against the Defendant.

3. The financial and operational impact of the Litigation to XOX Networks Berhad group.

There will not have any financial and operational impact on XOX Networks Berhad group for the financial year ending 30 June 2022 as the impairment on amount owing by the Defendant had been made in the previous financial year.

4. Details of the Judgement Debt.

The Plaintiff is claiming for the following Judgement Debt from the Court:

a) outstanding principal sum of RM4,900,000.00;

b) late payment interest at the rate of 3% per month calculated from the following due date of the said payment:

    (i) the amount of RM900,000.00 calculated from 31 December 2019;

    (ii) the amount of RM1,000,000.00 calculated from 31 January 2020;

    (iii) the amount of RM1,000,000.00 calculated from 29 February 2020;

    (iv) the amount of RM1,000,000.00 calculated from 31 March 2020; and

    (v) the amount of RM1,000,000.00 calculated from 30 April 2020,

until the full and final settlement of this Judgement Debt, or at such other rate and for such period as the Honourable Court may order;

c) costs of this action together with interest at the rate of 5% per annum; and

d) such further reliefs deemed fit and just by the Court.

This announcement is dated 15 February 2022.