SWANGCHAICHUAN (02321) and HCT have entered into a joint venture agreement to raise funds, develop, and operate a sheep source nanocollagen production facility in Collie, Western Australia.

SWANGCHAICHUAN (02321) announced that the company has entered into a binding Joint Venture Agreement (JV Agreement) with Holista Colltech Limited (HCT) regarding the funding, development, and operation of a nanocollagen production facility in Collie, Western Australia. The joint venture company will be established through Ovicoll Pty Ltd (the JV Company), with the company and HCT each holding a 50:50 shareholding structure. The company will contribute RM5 million as its initial capital investment to cover the start-up costs and initial operational funding requirements of the JV Company. As part of the commercial agreement, HCT has agreed to pay an amount equivalent to a 3% annual interest rate on the company's initial investment amount within two years. HCT also retains the contractual option to increase its equity stake in the JV Company to 75%, which can be exercised between the second and fifth anniversary of the company's initial capital investment, subject to the terms of the JV Agreement. A major shareholder of HCT has provided a personal guarantee to the company for certain financial obligations of the JV Company. The board of directors of the JV Company will consist of an equal number of directors nominated by the company and HCT. HCT will be responsible for the day-to-day management and operations of the JV Company, while the company will participate in the governance of the JV Company through board representation and approval authority over key strategic and financial matters. All existing and newly developed intellectual property related to nanocollagen technology will be owned by HCT, with the JV Company being authorized to use the relevant technology in its business operations. The board believes that the joint venture presents an opportunity for the group to participate in the development and commercialization of nanocollagen products, which can be used in nutritional supplements, food, cosmetics, and biomedical fields. As an equity partner, the company's participation in the investment is expected to support the commercialization process of collagen products and expand regional market opportunities, including tapping into markets that comply with halal certification standards.