1. Introduction
The Board of Directors of AGMO wishes to announce that Agmo Studio Sdn. Bhd. [Registration No. 201201001183 (974707-M)] (“Agmo Studio”), a wholly owned subsidiary of the Company, had on 29 November 2024 entered into a Memorandum of Understanding (“MOU”) with Maistorage Technology Sdn. Bhd. [Registration No. 201701014763 (1228928-P)] ('MaiStorage") to evaluate and explore potential business collaboration opportunities.
(Agmo Studio and MaiStorage shall hereinafter be collectively refer to as “Parties” and individually referred to as “Party”).
2. Information on the Parties
2.1 Agmo Studio
Agmo Studio was incorporated on 11 January 2012 as a private company limited by shares with its registered address at B-21-1, Level 21, Tower B, Northpoint Mid Valley City, No. 1, Medan Syed Putra Utara, 59200, Kuala Lumpur, Wilayah Persekutuan. The principal activity of Agmo Studio is provision of digital solutions and application development services.
The Directors of Agmo Studio are Tan Aik Keong and Low Kang Wen, who are the directors and substantial shareholders of AGMO.
2.2 MaiStorage
MaiStorage was incorporated on 21 June 2024 as a private company limited by shares with its registered address at Level 13A-6, Menara Milenium, Jalan Damanlela, Pusat Bandar Damansara, 50490 Kuala Lumpur, Wilayah Persekutuan. The principal activity of MaiStorage is engineering of cutting-edge Integrated Circuit (“IC”) design with embedded firmware and NAND controller IC for high performance storage solutions for enterprise, consumer or industrial use, and innovation of customisable SSD designed for data centres and Artificial Intelligence applications.
The Directors of MaiStorage are Gan Wee Kuan, Mark Hoe Mang and Yap Kee Kim. MaiStorage is a wholly owned subsidiary of Phison Electronics Corporation (“PHISON”), a company listed on the Taiwan Stock Exchange. Gan Wee Kuan is also the Chairman/Vice President of PHISON.
3. Salient Terms of MOU
The potential business collaboration are in the areas set forth below:
a) To exchange technical expertise and industrial knowledge to co-launch a cost efficient on-premise Large Language Model training and inferencing service (“Service”) to support the Malaysian government’s agenda for Artificial Intelligence sovereignty; and
b) The promotion, marketing and sales of the Service to their respective client bases.
Term and Termination
The MOU shall be effective from 29 November 2024 (“Effective Date”) and remain valid for a period of one (1) year from the Effective Date, or until the date the Parties entered into definitive agreement(s) which supersede this MOU, whichever occurs earlier.
4. Rationale of the MOU
The purpose of the MOU is to undertake possible collaboration in the areas as disclosed in Section 3 of this announcement.
5. Financial Effects
The MOU is not expected to have any material effect on the earnings per share, net assets per share, gearing, share capital and substantial shareholders’ shareholdings of the Company for the financial year ending 31 March 2025.
6. Risk Factors
The risk factors involved in the MOU at this juncture is expected to be minimal and, in the event the Company enters into a future definitive agreement with MaiStorage, the Board of Directors and the management of the Company will exercise due care in considering the associated risks and benefits.
7. Directors’ and/or Substantial Shareholders’ Interest
None of the Directors and substantial shareholders of AGMO and/or persons connected to them have any interest, direct or indirect, in the MOU.
8. Statement by Directors
The Board of Directors of AGMO having considered all aspects of the MOU is of the opinion that the MOU is in the best interest of AGMO.
9. Approval Required
The MOU does not require the approval of shareholders of the Company and any relevant government authorities.
10. Document Available for Inspection
The MOU is available for inspection at B-21-1, Level 21, Tower B, Northpoint Mid Valley City, No. 1, Medan Syed Putra Utara, 59200 Kuala Lumpur, W.P. Kuala Lumpur between 9.00 a.m. and 5.00 p.m. from Mondays to Fridays (except on public holidays) for a period of 3 months from the date of this announcement.
This announcement is dated 29 November 2024.