REG - MobilityOne Limited - Tenancy agreement & ordinary course transactions

MobilityOneAnnouncement

11/02/2022 07:00

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RNS Number : 3661B  MobilityOne Limited  11 February 2022

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the UK Market Abuse
Regulation. With the publication of this announcement via a Regulatory
Information Service, this inside information is now considered to be in the
public domain.

 

11 February 2022

 

MobilityOne Limited

("MobilityOne", the "Company" or the "Group")

 

Entry into tenancy agreement and ordinary course commercial transactions

 

MobilityOne (AIM: MBO), the e-commerce infrastructure payment solutions and
platform provider, announces that, MobilityOne Sdn Bhd ("M1 Malaysia"), a
wholly-owned subsidiary of the Group incorporated in Malaysia, has entered
into a tenancy agreement with LMS Digital Sdn Bhd ("LMS") to occupy
approximately 4,500 square feet of office space at Wisma LMS, Kuala Lumpur,
Malaysia (the "Wisma LMS Office") (together the "Tenancy Agreement").

 

The current office owned by M1 Malaysia, at Megan Avenue II in Kuala Lumpur,
Malaysia, has a total floor size of 2,800 square feet and is, accordingly,
insufficient for catering the growing staff needs of M1 Malaysia and its
subsidiaries (together the "M1 Group"). The Wisma LMS Office, located in the
Off Jalan Raja Muda Abdul Aziz district in Kuala Lumpur, is approximately
4,500 square feet in size and therefore offers the necessary staff space for
the M1 Group. Currently, the M1 Group is occupying the Wisma LMS Office
rent-free ("Rent Free Period") and has simultaneously been renting out the
Megan Avenue II office for RM2.50 per square feet, which is also the square
feet rate that is payable in relation to the Wisma LMS Office.

 

Pursuant to the terms of the Tenancy Agreement, M1 Malaysia will pay a monthly
rental fee of RM11,250 to LMS on the first day of each succeeding month which
is payable on or before the seventh day of the month. M1 Malaysia will not be
required to pay any rental deposit, utility deposit or any historic
consideration in relation to the Rent Free Period as part of the Tenancy
Agreement. The Tenancy Agreement will commence on 1 March 2022 and will be for
a minimum period of one year and will automatically renew on a yearly basis
unless either party gives three months' notice to the other party to
terminate.

 

The Group does not anticipate any revenue or earnings contribution from the
Tenancy Agreement to the Group.

 

Ordinary course commercial transactions

 

The Company is pleased to further announce that M1 Malaysia and TFP Solutions
Berhad ("TFP") have agreed the terms that will form the basis of several
ordinary course commercial transactions (otherwise known as "Business
Transactions"), details of which are outlined below. MBP Solutions Sdn Bhd
("MBP"), a wholly-owned subsidiary of TFP (listed on the ACE Market of the
Malaysia Stock Exchange), is an agent and reseller for the products and
services of M1 Malaysia. This includes since December 2018 acting as agent and
reseller of mobile phone prepaid airtime reload, bill payment and any other
products and services to be provided by M1 Malaysia. The current business
activities of TFP and its subsidiaries (together the "TFP Group") include
providing network security, IT solutions, SAP products, human resource
management solutions, mobile telecommunications services and a mobile fintech
platform.

 

 

The Business Transactions are revenue in nature and are not expected to
generate material profit for the Group.

.

 Nature of Business Transaction                                                                                           Estimated annual amount*
 M1 Group to charge TFP Group for development work to integrate eWallet/eMoney                                            RM50,000 to RM100,000
 into TFP Group's services and white labelling the eWallet/eMoney.

 M1 Group to charge TFP Group for various value added services (including                                                 RM1,000,000 to RM5,000,000 of revenue from end consumers and both parties to
 prepaid top-up and bill payment) to be provided by M1 Group. Charges are to be                                           share certain percentages of gross profit from the revenue of various value
 based on revenue/gross profit sharing as a channel partner.                                                              added services

 M1 Group to charge TFP Group for using M1 Group's online payment gateway.                                                RM50,0000 to RM100,000
 Amount charged to be based on percentage of payment.

 M1 Group to charge TFP Group for SMS blasting services. Amount charged to be                                             RM50,000 to RM100,000
 based on usage and quantity of SMS.

 M1 Group to charge TFP Group for using M1 Group's payment terminals and online                                           RM50,000 to RM100,000
 payment to accept payment via credit/debit cards and eWallets. Amount charged
 to be based on commission/discount rate sharing.

 TFP Group to charge M1 Group for SAP Business One software licenses. Amount to                                           RM20,000 to RM50,000
 be charged by TFP Group will be based on TFP Group's standard implementation
 and maintenance costs.

 

* The actual amount may vary, depending on the business growth and
requirements.

 

The Business Transactions (other than SAP Business One) will allow the M1
Group to earn additional income from TFP Group and its business network. The
M1 Group has been using SAP Business One software for many years.  Since TFP
Group is in the business of providing SAP products and services and is a
business partner of the M1 Group, the transactions in connection with SAP
Business One are expected to enhance the working relationship between the two
groups.

 

Related party transaction disclosure

 

Dato' Hussian A. Rahman ("Hussian") is a director of the Company and M1
Malaysia as well as a substantial shareholder of the Company. Hussian is also
a director of LMS and TFP respectively and a substantial shareholder of LMS
and TFP respectively. Accordingly, the entry into the Tenancy Agreement and
the Business Transactions outlined above are related party transactions under
the AIM Rules. The Directors of the Company (excluding Hussian who is not
considered to be independent as he is a director of LMS and TFP respectively
and a substantial shareholder of LMS and TFP respectively) consider, having
consulted with the Company's nominated adviser, Allenby Capital Limited, that
the terms of the Tenancy Agreement and the Business Transactions are fair and
reasonable insofar as the Company's shareholders are concerned.

 

For further information, please contact:

 

MobilityOne
Limited
+6 03 89963600

Dato' Hussian A. Rahman,
CEO                                                        www.mobilityone.com.my

har@mobilityone.com.my

 

Allenby Capital Limited

(Nominated Adviser and
Broker)                                                        +44
20 3328 5656

Nick Athanas /Vivek Bhardwaj

About the Group:

 

MobilityOne provides e-commerce infrastructure payment solutions and platforms
through its proprietary technology solutions. The Group has developed an
end-to-end e-commerce solution which connects various service providers across
several industries such as banking, telecommunication and transportation
through multiple distribution devices including EDC terminals, mobile devices,
automated teller machines ("ATM") and internet banking. The Group's technology
platform is flexible, scalable and designed to facilitate cash, debit card and
credit card transactions from multiple devices while controlling and
monitoring the distribution of different products and services.

 

For more information, refer to our website at www.mobilityone.com.my
(http://www.mobilityone.com.my)

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