MiLOC Group Limited - TERMINATION OF ENDORSEMENT AND SUPPLIER DISPUTE
28/01/2022 12:21
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RNS Number : 0167A MiLOC Group Limited 28 January 2022
28 January 2022
MiLOC GROUP LIMITED
("MiLOC" or "the Company")
TERMINATION OF ENDORSEMENT AGREEMENT AND SUPPLIER DISPUTE
MiLOC announces that its wholly owned subsidiary, MiLOC Pharmaceutical (HK)
Limited ("MilOC Pharmaceutical"), has entered into a termination agreement of
the Endorsement Agreement with Master Kingdom Limited (Artist's Management
Company), a company incorporated in Hong Kong, which is owned by Mr. Koo
Tin-lok, an entertainer in Hong Kong (the "Artist"), and received the
agreement on 12 January 2022. The termination of the Endorsement Agreement was
for the KooCool+ bodycare products, which was signed and announced on
21st January 2019.
Due to the outbreak of Covid-19, the Company's operation faces challenges like
other companies worldwide. The Company, the Artist and the Artist's Management
Company mutually agreed that the Company would stop selling with the Artist's
endorsement on 31 May 2021. The endorsement of the image, name and likeness of
the Artist, ended on the same date, 31 May 2021. MiLOC Pharmaceutical has also
entered into a termination of the commission agreement which was signed
with CN Workshop Limited together with the Endorsement Agreement on
21st January 2019.
The Company believes that the Termination Agreement has been beneficial to its
business. The Company has continued to achieve its turnover without the
Endorsement Agreement that would have cost the Company the minimum guaranteed
fees and a proportion of the gross revenue sharing to the Artist's Management
Company.
The Company also announces that one of its subsidiaries, Star Collaboration
(Guangzhou) Limited ("Star C"), has been notified by one of its suppliers of
the commencement of two legal proceedings, claiming a total of approximately
GBP202,470 (equivalent to approximately RMB1,748,000) in trade payables from
the Company, that are in dispute. The Company will defend both cases. Further
updates will be announced once further information becomes available.
The directors of the Company accept responsibility for the contents of this
announcement.
For further information, please contact:-
MiLOC
ONG Ban Poh Michael - Chief Executive Officer
Lilian Lo - Acting Chief Financial Officer Tel: +852 2110 4221
AQSE Growth Market Corporate Adviser Tel: +44 (0) 20 7469 0930
PETERHOUSE CAPITAL LIMITED
Guy Miller
Mark Anwyl
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