|Description||N2N CONNECT BERHAD ("N2N" OR "THE COMPANY") SETTLEMENT AGREEMENT|
Reference is made to Note B10 of the quarterly consolidated results of N2N announced on 26 February 2018, 25 May 2018, 28 August 2018, 21 November 2018, 25 February 2019 and 17 May 2019.
N2N Connect Berhad (“N2N’ or “the Company”) wishes to announce that the Company had on 23 May 2019 entered into a Settlement Agreement with SAKK Consulting, Inc. (“SAKK”) wherein the Company agrees to pay SAKK, on a without admission of liability basis, the sum of USD150,000 inclusive of interest and costs in full and final settlement of SAKK’s claim against the Company for, inter alia, USD411,946 in unpaid success fees in relation to an engagement letter dated 2 November 2015 between the Company and SAKK (the “Engagement Letter”) and in relation to the Company’s acquisition of AFE Solutions Limited (now known as N2N-AFE (Hong Kong) Limited) ) (the “Acquisition”), and the Company’s counterclaim against SAKK, as well as any and all complaints, claims, arbitrations, actions and proceedings, in relation to all matters of the action by SAKK against the Company in the High Court of the Hong Kong Special Administrative Region, the Engagement Letter (including any and all of its alternative form, amendment, and supplementary agreement) and the Acquisition.
By entering into the Settlement Agreement, it enables the Company to settle all disputes and claims with SAKK in a most beneficial and cost effective manner. The Board is of the view that continuing the legal dispute is both costly and time consuming. The Board made a commercial decision to enter into the Settlement Agreement as it would enable the Company to focus its time and attention in bringing revenue and business to the Group.
The Settlement Agreement is not expected to have any material impact on the Company and the Group.
This announcement is dated 23 May 2019.