The Board of Directors (“Board”) of NetX Holdings Berhad (“NetX” or the “Company”) wishes to inform that E-FX Sdn. Bhd. (“E-FX”), a wholly-owned subsidiary of the Company, had on 29 April 2020 entered into a Collaboration Agreement (“Agreement”) with Finexia Securities Ltd (“Finexia Securities”) to introduce, promote and operate the Point-to-Point currency exchange digital platform with an inbuilt e-wallet function (“e-FX Platform”) in Australia.

E-FX is principally involved in the business of all kinds of services relating to information technology including trading of computer hardware and software, software development, software implementation and installation, computer programming, computer consultancy and other ancillary services relating to the computer industry.

Finexia Securities is an Australian based diversified financial services provider with an Asia centric focus, and is the holder of an Australian Financial Services Licence issued by the Australian regulator, ASIC. The company’s core strengths lie in equity capital markets and other global trading markets such as foreign exchange and derivatives.

The Agreement shall commence from 29 April 2020 (“Effective Date”) and shall be for a period of 2 years until and unless otherwise mutually extended in writing or terminated by either party.

Pursuant to the Agreement, as consideration for the exclusive use and operation of the e-FX Platform in Australia, Finexia Securities shall be responsible to generate from the business and operation of the e-FX Platform a minimum total revenue in the amounts (“Target Revenue”) and within the period as follows:

(a) 1st Year from the Effective Date: AUD1,000,000 (Australian Dollars One Million only); and

(b) 2nd Year from the Effective Date: AUD3,000,000 (Australian Dollars Three Million only).

E-FX and Finexia Securities (collectively as “the Parties”) have agreed that any and all profits generated from the spread of forex, remittance, investment, balance floats of the e-FX Platform are to be divided and shared equally between the Parties on a 50:50 basis during and throughout the entire duration of the Agreement.

The Agreement will not have any effects on the share capital and shareholding structure of the Company. The collaboration is expected to have positive contribution to the earnings per share, net assets per share and gearing of the NetX Group.

Similar to all business ventures, there are risk factors affecting the performance of the Agreement, including but not limited to business risks such as prudent financial management, and changes in political, economic and regulatory conditions. However, the Board will continue to exercise due care in considering the risks associated with the Agreement and will take appropriate measures in planning the successful execution of the Agreement.

The Agreement, being entered into in the ordinary course of business, is not subject to the approval of the shareholders.

None of the Directors and/or other major shareholders of the Company and/or any persons connected to them have any interest, direct or indirect, in relation to the Agreement.

The Board, after due consideration, is of the opinion that the Agreement is in the best interest of the Group.

This announcement is dated 29 April 2020.