Metech International Limited
(Incorporated in the Republic of Singapore)
(Company Registration Number 199206445M)
ENTRY INTO A NON-BINDING STRATEGIC COLLABORATION AGREEMENT
Introduction
The Board of Directors (the "Board") of Metech International Limited (the "Company", and together with its subsidiaries, the "Group") wishes to announce that the Company had on 9 October 2021, through its joint venture company, Asian Eco Technology Pte. Ltd. ("AET"), entered into a non-binding strategic collaboration agreement ("Strategic Collaboration Agreement") with 国家金银饰品质量监督 检 验 中 心 ( 天 津 ) (National Testing Centre for Gold and Silver Jewellery (Tianjin) ("NTGS") an independent quality inspection laboratory, whereby NTGS would provide assessment and certification of AET's lab-grown diamonds that are marketed and sold in China (the "Strategic Collaboration").
Information on NTGS
NTGS is a Tianjin incorporated organisation providing professional and independent assessment and certification for precious metals, jewellery and gemstones in China. Various state agencies and organisations in China, namely 中华人民共和国国家质量监督检验检疫总局 (General Administration of Quality Supervision, Inspection and Quarantine of the People's Republic of China), 中国国家认证认可 监督管理委员会 (Certification and Accreditation Administration of the People's Republic of China) and 中国合格评定国家认可委员会 (China National Accreditation Service for Conformity Assessment), have authorised and recognised NTGS to provide their professional assessment and certification on precious metals, jewellery and gemstones.
Rationale for the Strategic Collaboration
The Strategic Collaboration combines the resources and networks of NTGS and AET to further develop and expand the market of lab-grown diamonds in China, with enhanced market competitiveness. The Company leverages on NTGS's reputation and expertise to grade and certify AET's lab-grown diamonds using the same process as mined diamonds. Buyers of AET's lab-grown diamonds in China will have the key details (cut, clarity, colour and carat) of each diamond.
Financial Effects
The Strategic Collaboration is not expected to have a material impact on the net tangible assets per share of the Company and the earnings per share of the Company for the current financial year ending 30 June 2022.
Interests of Directors and Substantial Shareholders
None of the directors and substantial shareholders of the Company has any interest, direct or indirect, in this Strategic Collaboration, NTGS, other than through their respective shareholdings in the Company, if any.
Further Information
The Strategic Collaboration Agreement is non-binding and valid a period of one year. Except for early termination of the Agreement, both Parties shall within 30 days before expiry of the Agreement, enter into new agreement. Subject to no objection to the continued collaboration between NTGS and AET during the period, the Company may consider entry into a definitive agreement with NTGS.
Cautionary Statement
Shareholders and potential investors of the Company should note that the Strategic Collaboration Agreement is non-binding in nature.
Shareholders and potential investors of the Company are advised to read this announcement and any further announcements made by the Company carefully. Shareholders and potential investors of the Company are advised to refrain from taking any action with respect to their securities in the Company which may be prejudicial to their interests, and to exercise caution when dealing in the securities of the Company. Shareholders and potential investors of the Company should consult their stockbrokers, bank managers, solicitors or other professional advisers if they have any doubt about the actions they should take.
By Order of the Board of Directors of
Metech International Limited
Samantha Hua Lei
Executive Director and Deputy CEO
12 October 2021
This announcement has been prepared by the Company and its contents have been reviewed by the Company's Sponsor, RHT Capital Pte. Ltd. (the "Sponsor") for compliance with the relevant rules of the Listing Manual Section B: Rules of Catalist of the Singapore Exchange Securities Trading Limited (the "SGX-ST"). The Sponsor has not independently verified the contents of this announcement.
This announcement has not been examined or approved by the SGX-ST and the SGX-ST assumes no responsibility for the contents of this announcement, including the correctness of any of the statements or opinions made or reports contained in this announcement.
The contact person for the Sponsor is Mr Khong Choun Mun, Registered Professional, RHT Capital Pte. Ltd. at 6 Raffles Quay, #24-02, Singapore 048580, sponsor@rhtgoc.com.
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