This is a voluntary announcement made by the Company.

The Board of Directors of CITAGLOBAL is pleased to announce that the Company and its wholly-owned entity i.e. Citaglobal Engineering Services Sdn. Bhd. (“CESSB”) had on 4 August 2023 entered into the following agreements respectively:

(a) a share sales agreement with Nik Ahmad Huznee Bin Nik Hussain (“Nik Ahmad Huznee”) and Nik Mohd Umar Bin Nik Ahmad Huznee (“Nik Mohd Umar”) (“Spectra Suria SSA”) for the acquisition by CESSB of 60% equity interest in Spectra Suria for a purchase consideration of RM2,000,000 in cash (“Spectra Suria Consideration”); and
(b) a share sale agreement with Nik Ahmad Huznee, Nik Fadhlee Bin Nik Ahmad Huznee (“Nik Fadhlee”) and Nova Spectra Energy Sdn Bhd (“Nova Spectra Energy”) (“Nova Reeco SSA”) for the acquisition by CITAGLOBAL of 40% equity interest in Nova Reeco and intention to purchase irredeemable convertible preference shares (“ICPS”) that convertible into 20% equity interest ordinary shares in Nova Reeco upon issuance for a purchase consideration of RM3,000,000 in cash (“Nova Reeco Consideration”).

In addition, CITAGLOBAL has committed to making further investment in the form of shareholders advance or redeemable preference shares of at least RM7,000,000 in its Nova Reeco venture, bringing its total investment in Proposed Acquisitions to a total of RM12,000,000.
The Proposed Acquisitions are in line with the National Energy Transition Roadmap (“NETR”) recently launched by Ministry of Economy Malaysia and the strategic plan of Citaglobal in expanding its renewable energy division and will contribute positively for the earnings of Citaglobal as and when Spectra Suria and Nova Reeco start recognising profits from their projects.

Please refer to the attachment for the details of the announcement.

This announcement is dated 4 August 2023.