OTHERS M3 TECHNOLOGIES (ASIA) BERHAD ("M3TECH" OR "THE COMPANY") - TECHNOLOGY PARTNERSHIP AGREEMENT ENTERED INTO BETWEEN M3 ONLINE SDN BHD ("M3 ONLINE"), A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY AND PAYALLZ SDN BHD ("PAYALLZ")

M3 TECHNOLOGIES (ASIA) BERHAD

Type Announcement
Subject OTHERS
Description
M3 TECHNOLOGIES (ASIA) BERHAD ("M3TECH" OR "THE COMPANY")
- TECHNOLOGY PARTNERSHIP AGREEMENT ENTERED INTO BETWEEN M3 ONLINE SDN BHD ("M3 ONLINE"), A WHOLLY-OWNED SUBSIDIARY OF THE COMPANY AND PAYALLZ SDN BHD ("PAYALLZ")

1.      INTRODUCTION

The Board of Directors of M3TECH wishes to announce that M3 ONLINE, a wholly-owned subsidiary of the Company, had on 19 April 2017 entered into a Technology Partnership Agreement with PAYALLZ (“TPA”) to co-develop an electronic payment mobile exchange (“E-Pay”) that enabling the mobile subscribers of XOX Bhd (“XOX”) to be an e-commence merchant and have interconnect ability with both local and international payment gateways.

 

2.      INFORMATION ON PAYALLZ

PAYALLZ is a licensed Master Merchant Acquirer which principally provides payment solutions to merchants and is a recognized payment solution provider utilizing the infrastructure of VISA and MASTERCARD with a nationwide network of merchants.

PAYALLZ is a subsidiary of Netx Holdings Berhad ("NETX"), a company listed on the ACE Market of Bursa Malaysia Securities Berhad ("Bursa Securities") with its subsidiaries and/or associated companies specializing in electronic payment solutions and applications. 

XOX is a company listed on the ACE Market of Bursa Securities with its subsidiaries and/or associated companies involved in the provision of Mobile Virtual Network Operator services.

 

3.      SALIENT TERMS OF THE TPA BETWEEN PAYALLZ AND M3 ONLINE

(i)      M3 Online will co-develop with PAYALLZ the E-pay that enables the mobile subscribers of XOX to be an e-commerce merchant.

(ii)     PAYALLZ will provide integration of multiple payment gateways and be able to seamlessly connect into Digital Free Trade Zone (“the Project”).  

(iii)    M3 Online will develop the front end interface of the mobile application and the e-commerce platform that is seamlessly connected to the Project.

(iv)   The Parties may mutually agree to broaden, increase, narrow, limit, abandon or undertake new areas or more specific areas of research and development or joint research opportunities from time to time in accordance with the terms and condition of the TPA.

(v)    The term of TPA is for an initial period of one (1) year and to be renewed annually, commencing on the date of the TPA, unless otherwise mutually extended or terminated.

(vi)   The Project costs and detailed investment terms of each available site shall be determined on a case to case basis mutually between the parties.

(vii)   Intellectual property including all trademarks, property rights, title and interest with respect to the products which is proprietary to each party shall be owned by the respective party concerned.

(viii)  M3 Online grants PAYALLZ consent to include its name, profile and technological write-up in documents issued by PAYALLZ including but not limited to NETX’s corporate profile, brochures, marketing materials, prospectus, or other documentation.

(ix)   Both parties shall cooperate in respect of any litigation or claims, notifying the other party of any possible claims of infringement of intellectual property the party may be aware of and cooperate with each other in the prosecution of any actual or alleged infringement by third party of any of the same.

 

4.      FINANCIAL EFFECTS

The signing of the TPA is not expected to have any material effect on the share capital, major shareholding, earnings, net assets and gearing of the Company for the financial year ending 30 June 2017. However, it is expected to have positive contribution to the earnings per share and net assets per share of the Company should the TPA be subsequently commercialised.

 

5.      APPROVAL REQUIRED

The TPA is executed in the ordinary course of business of the Group and is not subject to the approval of the shareholders of M3Tech.

 

6.      INTERESTS OF DIRECTORS, MAJOR SHAREHOLDERS AND/OR PERSONS CONNECTED TO THEM

Insofar as the Board of Directors of M3TECH is able to ascertain (save for XOX, being the Major Shareholder of the Company), none of the Directors or Major Shareholders of the Company and/or persons connected to them have any interest, direct or indirect, in the TPA.

 

7.      DIRECTORS’ RECOMMENDATION

The Board of Directors of M3TECH (save for Datuk Chai Woon Chet and Mr. Ng Kok Heng, who are also the Directors of XOX) having considered all aspects of the TPA, is of the opinion that the TPA is in the best interests of the Group.

 

8.      DOCUMENT AVAILABLE FOR INSPECTION

The TPA is available for inspection at the registered office of M3TECH at Third Floor, No. 79 (Room A), Jalan SS21/60, Damansara Utama, 47400 Petaling Jaya, Selangor during normal business hours on Mondays to Fridays (except public holidays) for a period of three (3) months from the date of this announcement.

This announcement is dated 19 April 2017.

 






Announcement Info

Company Name M3 TECHNOLOGIES (ASIA) BERHAD
Stock Name M3TECH
Date Announced 19 Apr 2017
Category General Announcement for PLC
Reference Number GA1-19042017-00066