Friday 29 Mar 2024
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KUALA LUMPUR (Aug 10): Mlabs Systems Bhd’s wholly-owned subsidiary Multimedia Research Lab Sdn Bhd (MRL) has entered into a collaboration agreement with Thailand’s Onliner Company Ltd to share and exploit IT technologies to develop new markets in Thailand and overseas.

In its filing to Bursa Malaysia today, Mlabs said Onliner provides total business solution in offline and online information technology (IT) throughout Thailand and regionally, and offers state of the art technology in creating and designing computer programs for wireless internet networks, WI-Fi marketing and platform solutions.

Onliner currently holds a concession from the State Railway of Thailand to set up and provide free wi-fi service in the Chatuchak Market in Bangkok for a concession period of five years, from Nov 2016 to Oct 2021.

MRL on the other hand, is in the business of research and development in multimedia video conferencing systems, assembling and trading of multimedia video conferencing systems and the provision of mobile application solutions.

Under the collaboration, Onliner will design and set up the free wifi and e-commerce services in Chatuchak Market, and will also develop a business model to generate revenue and earnings from the provision of services.

MRL will provide multimedia video conferencing and related technology, including technical support, to enhance functionality of the project. MRL will commit a value of RM800,000 in IT technology support, which includes its multimedia video conferencing technology.

Onliner will manage the day-to-day operations of the project, including funding, marketing and maintenance of the free wi-fi and e-commerce services, and is to deliver a 15% return per annum in cash on the financial value contributed by MRL under the collaboration commitment for a minimum of 2 years, commencing from the date of the collaboration agreement.

The collaboration agreement shall be effective as of the date of execution of the agreement by both parties and will continue in full force and effect until the expiry of the project, or after 24 months from the date of the collaboration agreement by either party, giving three months notice to the other party.

Upon termination of the collaboration agreement, Onliner will return to MRL in financial value, a sum equivalent to the value of the collaboration commitment contributed by MRL under the agreement.

The collaboration is expected to contribute positively to the consolidated earnings of Mlabs for the financial year ending March 31, 2018 (FY18). The pact is also expected to improve the consolidated net assets per share of the company.

Mlabs shares were trading at 17 sen at noon market close today, up 0.5 sen or 3% from its last closing price. It was the third most active counter on Bursa Malaysia this morning, with 22.86 million shares exchanging hands, exceeding its 200-day average trading volume of 5.9 million shares.

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