MATERIAL LITIGATION ICONIC WORLDWIDE BERHAD ("ICONIC" OR "THE COMPANY") - JAWI MAGISTRATE COURT CIVIL SUIT NO. PE-A72NCVC-81-04/2023: CERAMTEC INNOVATIVE CERAMIC ENGINEERING (M) SDN. BHD. V ICONIC MEDICARE SDN. BHD. (IN THE ORIGINAL ACTION); ICONIC MEDICARE SDN. BHD. V CERAMTEC INNOVATIVE CERAMIC ENGINEERING (M) SDN. BHD. (IN THE COUNTERCLAIM)

ICONIC WORLDWIDE BERHAD

Type Announcement
Subject MATERIAL LITIGATION
Description
ICONIC WORLDWIDE BERHAD ("ICONIC" OR "THE COMPANY") 
- JAWI MAGISTRATE COURT CIVIL SUIT NO. PE-A72NCVC-81-04/2023: CERAMTEC INNOVATIVE CERAMIC ENGINEERING (M) SDN. BHD. V ICONIC MEDICARE SDN. BHD. (IN THE ORIGINAL ACTION); ICONIC MEDICARE SDN. BHD. V CERAMTEC INNOVATIVE CERAMIC ENGINEERING (M) SDN. BHD. (IN THE COUNTERCLAIM)

Introduction:

Pursuant to Paragraph 9.04(f) of the Main Market Listing Requirements, the Board of Directors of Iconic wishes to announce that Iconic Medicare Sdn. Bhd. (“IMED”), a wholly owned subsidiary of the Company had on 16 May 2023 filed a Statement of Defence and Counter Claim against a Writ of Summons No. NA-A72NCvC-129-03/2023 dated 13 March 2023 (“Writ”) filed by CeramTec Innovative Ceramic Engineering (M) Sdn. Bhd. (“CICE”).

IMED is a wholly-owned subsidiary company of ICONIC and a major contributor to the financial performance of the Group.

Chronology of events:

IMED was served with the Writ filed by CICE, at its business address on 20 March 2023, who seeks for the following orders:

  1. the outstanding sum of RM44,130 due under purchase orders issued on 18 December 2020 and 21 December 2020 ;
  2. post-judgement interest pursuant to the Civil Law Act 1956 at the rate of 5% per annum from the date of judgement until the date of full payment of the judgement sum;
  3. costs; and
  4. such further and/or other relief that the Court deems fit and appropriate.

The Board of Directors of Iconic, after deliberation  deemed the claim by CICE as frivolous and concluded  that the Writ was not material to warrant an announcement as the claim was not expected to have any material impact on the operations, earnings, net assets or gearing of the Company for the financial year ending 31 March 2024. Hence, no announcement was made to the Bursa Malaysia Securities Berhad at that point of time.

Subsequently, upon consultation with our  solicitors on the management’s assessment on the estimated losses on income and profits  due to the loss of business directly  arising from the failure to deliver  goods on timely as promised by CICE and the additional costs incurred therefrom, IMED had on 16 May 2023 filed a Counter Claim against CICE (“Counter Claim”), seeking for the following orders:

  1. general damages under para 14 of the Statement of Defence and Counterclaim for RM609,000;
  2. general damages under para 15 of the Statement of Defence and Counterclaim for USD3,760,000;
  3. interest;
  4. costs; and
  5. any other order and/or relief.

Estimated potential liability to ICONIC Group arising from the Counter Claim: 

The Board is of the opinion that apart from the professional fees payable, there shall be no other potential liability imposed on ICONIC Group which may arise resulting from the Counter Claim.   

Financial and Operational impact:

Though the actual quantum of the Counter Claim is subject to the outcome to be determined by the court, the Board is of the opinion that based on the general damages amount specified in the Counter Claim, this suit is expected to have a material impact on the future earnings and net assets of ICONIC Group for the financial year ending 31 March 2024.

The Company will continue to make further announcements as and when there are material developments in respect of the aforesaid proceedings.

This announcement is dated 22 May 2023.






Announcement Info

Company Name ICONIC WORLDWIDE BERHAD
Stock Name ICONIC
Date Announced 22 May 2023
Category General Announcement for PLC
Reference Number GA1-19052023-00058