1. INTRODUCTION

The Board of Directors of XOX Bhd (“XOX” or “the Company” or "the Group") is pleased to announce that XOX Wallet Sdn. Bhd. (“XOX Wallet”), a wholly-owned subsidiary of the Company has on 12 April 2017, entered into a Technology Collaboration Agreement with Payallz Sdn. Bhd. ("Payallz"), to develop an electronic payment mobile exchange (hereinafter referred to as "E-Pay exchange") that enables every XOX’s subscribers to be an e-commerce merchant and have interconnect ability with both local and international payment gateways. ("Collaboration Agreement").

2. INFORMATION ON PAYALLZ

Payallz is a subsidiary of Netx Holdings Berhad (hereinafter referred to as “Netx”), a company listed on the ACE Market of Bursa Malaysia Securities Berhad with subsidiaries and associated companies specialising in electronic payment solutions and applications.

3. SALIENT TERMS OF COLLABORATION AGREEMENT

a) XOX Wallet would collaborate with Payallz to develop an E-payment exchange that enables every XOX mobile subscriber to be an e-commerce merchant. Payallz to provide integration of multiple payment gateways and be able to seamlessly connect into the Digital Free Trade Zone ("Project"). This will allow for XOX subscriber to have multiple payment options to perform e-commerce transactions whether on conventional websites or using their mobile wallet.

b) 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 this Collaboration Agreement.

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

d)  The Collaboration Agreement is for an initial period of one (1) years and renewed annually, commencing on the date of the Collaboration Agreement, unless otherwise mutually extended or terminated.

e) 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.

f)  XOX grants Payallz consent to include XOX 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.

g) 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 Collaboration Agreement is not expected to have any material effects on the share capital and shareholding structure of the Company.  However, it is expected to have positive contribution to the earnings per share and net assets per share of the Group should the Collaboration Agreement be subsequently commercialised.

5. APPROVAL REQUIRED

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

6. DIRECTORS’ AND MAJOR SHAREHOLDERS’ INTEREST

Save for Mr Tan Sik Eek, who is the Independent Non-Executive Director of the Company and also the Executive Director of Netx, none of the directors, major shareholders of XOX and/or persons connected to them has any interest, direct or indirect in the Collaboration Agreement.

7. STATEMENT BY DIRECTORS  

The Board of Director of XOX (save for Mr Tan Sik Eek), having taken into consideration all aspects of the Collaboration Agreement, is of the opinion that the Collaboration Agreement is in the best interest of the Group.

This announcement is dated 12 April 2017.