NAGACORP (03918) still plans to continue with the Naga 3 project.

NAGACORP (03918) announced that it has terminated the subscription agreement for the development and construction of the comprehensive resort facility Naga 3 in Phnom Penh, Cambodia. Due to changes in the external macroeconomic environment since the signing of the subscription agreement in April 2019, the subscriber and the company met to discuss the ongoing funding needs and the timeline for the Naga 3 project. After careful consideration, both parties agreed that not continuing with the subscription agreement was in the best business interests of both parties, and they mutually terminated the agreement to resolve all related responsibilities. On December 15, 2025, the company and the subscriber signed a mutual termination agreement, agreeing to (a) terminate the subscription agreement and all rights and obligations under the agreement from the date of signing the mutual termination agreement; (b) fully waive, release, abandon, discharge, and exempt each other from any and all claims, suits, causes of action, rights, damages, expenses, obligations and liabilities that may arise or are related to the subscription agreement, whether known or unknown; (c) release and discharge each other from all obligations, representations, warranties, commitments, claims and demands under the subscription agreement; and (d) waive all rights, interests, benefits, and privileges arising from or related to the subscription agreement. As per the terms of the mutual termination agreement, the cash advance of $316 million paid by the subscriber as part of the subscription payment has been confiscated by the company and allocated to reserves, with no obligation to issue any settlement shares. The board believes that terminating the subscription agreement will not have a significant adverse impact on the group's existing business or financial condition. For good corporate governance, Mr. Chen Yufeng (as a director of both the subscriber and the company) has recused himself from any discussions and decisions related to the subscription agreement at the board level. It is clarified that despite the signing of the mutual termination agreement, the company still plans to continue with the Naga 3 project. The company will assess the remaining development plans for Naga 3 and explore other funding channels if necessary.