22 February 2019
Early Equity PLC
(“Early Equity” or “the Company”)
Investment in Mei Home Sdn. Bhd
Early Equity Plc (NEX: EEQP), is a proactive investment company focused on making investments in early-staged companies which exhibits the potential to generate recurring income streams. The Company is pleased to announce that it has acquired 60 units of fully paid up share capital of MEI Home Sdn. Bhd. (“MEI Home”), representing 60% of its issued share capital. The total consideration for this investment is One Million Five Hundred Thousand Ringgit Malaysia (RM1,500,000), which is approximately £281,955.
MEI Home is an e-commerce platform involved in online and offline businesses of all kind of household, health, beauty, food and beverages products. Strategic marketing and advertising through various channels are implemented to large target potential customers locally and within South East Asia region.
MEI Home started trading in July 2017 and has achieved a turnover of Ringgit Malaysia (RM) 1,954,318 (approximately £367,353) with a net profit before tax of Ringgit Malaysia 509,475 (approximately £95,766) in audited results for its year ending 30th June 2018.
MEI Home is wholly owned by Michael Dieh Siew Huat (“Michael Dieh” or the “Seller”), he is also a shareholder of Early Equity, holding approximately 6,12% of the share capital of the Company. The Seller will continue to work with the business and has provided certain undertakings on revenue for the next two years. The Seller has committed to provide Early Equity a profit guarantee that MEI Home will generate RM500,000-00 per annum net profit before tax over the next two financial years. If it is not the case, the Seller will be liable for the difference.
Early Equity Chief Executive Edwin Chua Siew Lian said “This acquisition continues to build on the Company’s exposure to online sales of consumer goods into South East Asia. The Directors believe that the Sales and Profit in this year is a strong indication of success for MEI Home”.
The directors of Early Equity Plc accept responsibility for this announcement.
For further information please contact:
Tel: +44 7830 182501
NEX CORPORATE ADVISER:
Alexander David Securities Limited
David Scott – Corporate Finance
James Dewhurst – Corporate Broking
Telephone: +44 (0) 20 7448 9820
49 Queen Victoria Street, London EC4N 4SA