\n<\/p>\n
SINGAPORE \/ KUALA LUMPUR, MALAYSIA\u00a0<\/span>–<\/span> Media OutReach<\/a>\u00a0– 2<\/span>1<\/span> May 2021 –<\/span> Enviro-Hub Holdings Ltd<\/a> (SGX:L23)<\/b> has \u00a0<\/p>\n Under the term sheet, Enviro-Hub will pay cash \u00a0<\/p>\n PGSB, which is based in Malaysia, is primarily \u00a0<\/p>\n As previously announced by the Company on 16 March \u00a0<\/p>\n Following the acquisition, the founders of PGSB, Mr. \u00a0<\/p>\n “The COVID-19 pandemic has \u00a0<\/p>\n According to Hong Leong Investment Bank[1]<\/sup>, \u00a0<\/p>\n “Once the deal is completed, \u00a0<\/p>\n The Executive Chairman noted that the proposed PGSB \u00a0<\/p>\n On 18 May 2021, the Company had also announced that \u00a0<\/b><\/p>\n Note to media: Please read
\nannounced the proposed acquisition of the remaining 75 per cent share capital
\nof its 25 per cent associated company, Pastel Glove Sdn. Bhd. from existing
\nshareholders (“PGSB<\/b>” or the “Target<\/b>“)
\nfor a total consideration of S$46.8 million, payable 50 per cent in cash and 50
\nper cent in new shares in the Company. The Proposed Acquisition shall be
\nsubject to, inter alia<\/i>, the Company and the vendors enter into definitive
\nagreements on terms to be agreed. <\/p>\n
\nconsideration of S$23.4 million, and further issue 292,500,000 new shares at a
\npre-determined issue price of S$0.08 per share for a total subscription price of
\nS$23.4 million. Of the total S$23.4 million cash consideration, 25 per cent
\n(S$5.85 million) will be paid on the completion of the deal and the remaining
\nS$17.55 million will be paid on a staggered basis upon the Target’s achievement
\nof performance guarantee of US$18 million over the period of fiscal years 2021-2023.
\nThere will be a one-year moratorium for all the 292,500,000 consideration shares
\nissued during which the consideration shares may not be sold or transferred. <\/p>\n
\ninvolved in the manufacture and trading of rubber gloves. Enviro-Hub had made
\nan initial investment in PGSB in January 2021 by way of a subscription of an initial
\n25 per cent equity stake in the Target for approximately US$0.125 million in
\nequity and the grant of a US$4.875 million interest-free shareholders’ loan to
\nPGSB.<\/p>\n
\n2021, in February this year, PGSB had installed and commissioned its first
\nautomated glove-dipping line. A total of six production lines with an expected
\nproduction capacity of 1.42 billion gloves per annum are expected to be operational
\nby September 2021. <\/p>\n
\nLaw Siau Woei, and Mr. Choo Kuan Ping, will remain in charge. The founders have
\nover 20 years of experience in the gloves manufacturing industry. Prior to setting
\nup PGSB, Mr. Law and Mr. Choo were involved in the glove supply business as
\ntraders, with a network of global multinational customers. Once the deal is
\ncompleted, Mr. Law will be substantial shareholder in Enviro-Hub, thus aligning
\nhis interest strongly with shareholders of EHH.<\/p>\n
\nresulted in an unprecedented increase in the demand for gloves and Personal
\nProtective Equipment (PPE), due to the increasing usage of gloves to protect
\nhealthcare professionals, and the heightened hygiene standards at Food and Beverages
\n(F&B) establishments, hospitality, and travel sectors. The recent
\nresurgence in global COVID-19 cases and supply shortage in the US will continue
\nto support elevated average selling prices (ASPs) for gloves, which bodes well
\nfor glove makers,”<\/i><\/b> Adrian Toh, Enviro-Hub’s Chief Investment Officer (“CIO”)
\nsaid.<\/p>\n
\ndemand for rubber gloves is expected to remain elevated with their increased
\nusage in vaccination programmes around the world more than offsetting the decline
\nin gloves used for testing. This will help to keep ASPs high as there remains a
\nsupply shortage of gloves of about 12.4 billion for 2021 despite new entrants
\nand industry players ramping up production capacities. Hong Leong Investment
\nBank estimates that global herd immunity could take as long as 5 years, and
\nthis could provide support for glove demand in the medium term.<\/p>\n
\nthe Group will have absolute control of the lucrative glove operation of PGSB which
\nwill not only generate a strong bottom-line but also positive cash flow. The
\ncash flow will help the Group expand its new healthcare products business line.
\nThe management team from PGSB has a wealth of experience in the PPE business
\nand they are committed to growing the healthcare products business division in
\nEnviro-Hub rather than just focusing on PGSB. Their know-how in sophisticated
\nclean room and medical gloves set-up will aid our expansion efforts by way of
\nacquisition and\/or organic growth in our healthcare products business line,”<\/i><\/b>
\nExecutive Chairman of Enviro-Hub, Mr. Raymond Ng (“Mr. Ng”) said.<\/p>\n
\nacquisition is in line with Enviro-Hub’s strategy of pivoting its business
\ntowards healthcare products supply and trading, and recycling & refining
\nE-waste\/metals to provide additional and recurring revenue streams for the
\nGroup. “Going forward our focus will be on, PPE
\nproducts such as latex and nitrile gloves for medical and industrial use. We
\nwill also focus on medicine, medical consumables, and other healthcare-related
\nproducts,”<\/i><\/b> Mr. Ng said.<\/p>\n
\nits 51 per cent indirectly owned subsidiary, QF 4 Pte. Ltd. had, on 14 May 2021,
\ngranted an option to purchase to Extra Space Hillview Pte. Ltd., for Extra
\nSpace Hillview Pte. Ltd to purchase its property units at Lam Soon Industrial Building
\nat a consideration of approximately S$35.3 million. Please refer to the
\nCompany’s announcement dated 18 May 2021 for further information on the grant
\nof the said option to purchase. <\/p>\n
\nthis press release in conjunction with the Company’s announcement released on SGXNet.<\/b><\/p>\n