Mlabs bags US$10 million contract

KUALA LUMPUR: Mlabs Systems Bhd announced that its wholly-owned subsidiary, Multimedia Research Lab Sdn Bhd (MRL), has received a Letter of Award from Red Dragon Media Ltd (RDM) to act as the main contractor for computer generated imagery production work valued at US$10 million (US$1=RM4.27).

This was following a collaboration agreement between both parties on July 18, 2017.

In a filing to Bursa Malaysia yesterday, Mlabs said the one-year contract would be transferred to the joint-venture company (JVC), tentatively named Gold Dragon Media Sdn Bhd (GDM) or any name to be identified at a later stage as soon as the JVC becomes operational.

The contract is expected to contribute positively towards Mlabs group’s earnings and net assets for the financial year ending March 31, 2018.

In a separate filing, Mlabs said in relation to the collaboration agreement, MRL had inked an investment and shareholders’ agreement with RDM and Tan Sik Hui (TSH) on Aug 23, 2017.

The agreement with the two parties was to document their respective investments into a JV vehicle, GDM.

“GDM or any name to be identified at a later stage, is for the purpose of venturing into the development and marketing of media and game intellectual properties from the Chinese market into the Malaysian market.

“It is also to associate with the media and game developing companies in Malaysia to research and share new intellectual properties, as well as to regulate the affairs of GDM and their relationship as shareholders of GDM,” said Mlabs.

The JV would allow MRL to collaborate with an established international company to expand its revenue base and acquire new information technology.

Funds for the investment is expected to be from internally generated funds.

MRL will take up a 50 per cent stake in the JV, RDM (40 per cent) and TSH (10 per cent) while the JV will have a total paid-up capital of RM100,000.