The Board of Directors of Sersol Berhad announced that the Company had on 28 October 2022 entered into a Heads of Agreement (‘HOA') with Natural and Premium Foods Co. Limited (‘N&P') (collectively referred as ‘the Parties') with the intention to enter into an association of mutual benefit and to jointly invest and set up a new joint venture enterprise, entity or designed joint venture entity which shall be mutually agreed between Sersol and N&P, for the purpose of distributing N&P's products in Malaysia. N&P a company incorporated in Thailand was found on the vision of enhancing the quality of life and promoting the sustainability of the planet Earth.

N&P is committed to support and promote organic agriculture as the mean to sustainable development and safe land use as well as a better environment. N&P grows organic crops because they believe that organic agriculture can result in the products which are safe, flavorful and healthful. The HOA is to pave way for Sersol and N&P to govern their respective rights, duties and obligations with respect to the Joint Venture Company (‘JVCO') and to provide supports, based on their expertise, in certain matters in connection with the management and operation of the JVCO.

Establish and register a JVCO with the following purposes, within three (3) months from the execution of the HOA: Sersol will assist and facilitate N&P and JVCO in conducting and to accomplish all business activities in Malaysia; and N&P will provide the products of N&P, including those of the parent and subsidiary companies of N&P to the JVCO. This HOA shall be effective from the date of execution of the HOA and remain in force for a period of three (3) months unless terminated upon occurrence of any one of the following events (whichever is the earliest), or expressly superseded by the terms of any other definitive agreements or extended by written agreement between the Parties: The Parties mutually agree in writing to terminate the HOA; Either party becomes insolvent, declares bankruptcy, enters into liquidation proceedings or calls in the receiver; and The project is officially abandoned.