ecoWise has agreed to dispose of its Malaysian property for RM14 million ($4.0 million) after receiving an offer from Taehwa Engineering Sdn Bhd on May 13.
The property is legally owned by ecoWise’s wholly-owned subsidiary, Sunrich. It is located at Lot 76A & 76B Senawang Industrial Estate, Seremban 70450 and is held under a 99-year lease, which expires on Jan 25, 2075.
A sale and purchase agreement (SPA) was entered into between Sunrich and Taehwa Engineering on June 3.
The SPA is conditional and will be completed after the economic planning unit of the Malaysian Prime Minister department has issued a letter of no objection for the acquisition. The relevant state authority will also have to grant its consent to transfer the property. Both conditions have to be fulfilled within 12 months from the date of the SPA. The SPA will turn unconditional once both conditions are fulfilled and will be completed within three months of the unconditional date.
If the conditions are not fulfilled, either party may terminate the agreement via written notice.
According to ecoWise, the property is unused and its disposal will strengthen the group’s cash position and improve its liquidity. The property is said to be valued at RM14 million by an independent professional valuer in Malaysia on May 31, 2022. No valuations were made within the last six months prior to the offer.
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Shares in ecoWise last traded at 7.8 cents. The group’s shares have been suspended since June 2021.
