NOTES TO THE FINANCIAL STATEMENTS 39. SIGNIFICANT EVENTS DURING THE FINANCIAL YEAR (CONTINUED) Significant events during the financial year are as follows: (continued) (b) Material litigation between Dagang NeXchange Berhad, DNeX Semiconductor Sdn. Bhd., Mimastronics Technologies Company Limited and Tethystronics Technologies Company Limited: (continued) i. Arbitration proceeding against Mimastronics Technologies Company Limited (“MIMAS”) (continued) Vide MITI’s letter dated 28 February 2022, DNeX and CGP learned that the prior approval of MITI was required in relation to the Proposed Investment. Despite the clarification letter from MITI, MIMAS purported to stamp the SSA and SHA, utilising scanned copies of the signing pages of the said agreements on which DNeX and DNeX Semi signed. This was despite the understanding of the parties that only wet ink copies would be stamped. At all material times, the original wet ink copies of the SSA and SHA are kept in trust by DNeX’s solicitors and have not been released to CGP, MIMAS or its solicitors. MIMAS took, and still takes, the position that such approval was not required and maintains that the SSA and the SHA are valid and enforceable. It is, further, MIMAS’s position that these agreements should not be understood as being conditional upon such approval. DNeX and DNeX Semi, however, consider such approval as necessary, more so in light of the terms and conditions of the SSA and the SHA which provide for MIMAS becoming a shareholder upon the issuance of the ICPS and not their conversion. If so, this puts the Licence, and thus the operations of Silterra, at risk. This is also after taking into account the MITI’s letter dated 28 February 2022 which stipulates that the prior approval of MITI was required in relation to the Proposed Investment. It is the position of DNeX and DNeX Semi that the SSA and the SHA are void by reason of Section 21, Contracts Act 1950 as the parties were under a mistake as to a matter of fact essential to the said agreements. In view of the foregoing, DNeX and DNeX Semi demand that the dispute be referred to arbitration pursuant to the Arbitration Agreements in accordance with the Asian International Arbitration Centre Arbitration Rules, 2021. Notice of Arbitration was issued on 17 November 2022. The hearing proceeded on 24, 25, 26, 28 and 29 October 2024 and concluded on 17 February 2025. Submissions have been filed. The matter is pending hearing and/or decision. ii. Commencement of Originating Summons by TTCL against DNeX Semi and Silterra in relation to a shareholders’ agreement dated 8 July 2021 entered between TTCL and DNeX Semi. The Company’s subsidiaries namely, DNeX Semi and Silterra (collectively referred to as “the Group” or “the Defendants”) were on 15 December 2022 served with an Originating Summons together with notice of Application (ex-parte) for injunctive relief against the Defendants. The cause papers were served at the registered office of the Defendants on 12 December 2022. As a result of inadvertent clerical error, the cause papers were not brought to the attention of the management of the Defendants. The notice of application sought among others, injunctive relief and remedies against the Defendants. The notice of application was heard before the High Court on 14 December 2022. As a result of explanation given by the Defendants’ counsel, the court granted an interim injunction pending hearing of the Plaintiff and Defendants on 22 February 2023. 221 OPERATIONAL REVIEW SUSTAINABILITY STATEMENT GOVERNANCE FINANCIAL STATEMENTS SHAREHOLDERS’ INFORMATION INTELLIGENCE POWERING
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