YGL Convergence Berhad subsidiary, Ygl IT said it has been offered and accepted a Malaysia Digital Catalyse Grant amounting to RM1 million from MDEC. MDCG is a grant provided by the MDEC specifically designed to catalyse the use and development of disruptive and innovative sustainable solutions within Malaysia Digital promoted sectors and technology enablers in alignment with the National Fourth Industrial Revolution Policy.
The Grant will be used solely for the purpose of joint creation, problem-solving, development, and commercialization of innovative solutions with an end-user partner namely PIJ Halal Ventures Sdn. Bhd. The MDCG is given subject to mutually agreed time-bound deliverables under the terms and conditions specified by MDEC
The Board of Directors believes that being awarded the MDCG to its wholly owned subsidiary, Ygl IT, is in the best interest of the Company and its shareholders, as the MDCG will: –
a) provide the financial support for Ygl IT to complete the Project;
b) will accelerate the completion of the Project within the specified one-year period;
c) will enhance the credibility of Malaysia Halal Standards through the online Halal monitoring system; and
d) will position the Company as a serious player in the Halal information technology sector.
The group said the award of the MDCG will have no effect on the issued share capital, but is expected to improve the earnings per share, and net assets per share and reduce the gearing level of the Company for the financial year ending 31 March 2025 and 31 March 2026 when the Project is commercialised with the End-User. The expected revenue to be generated from the Project is RM1.98 million and RM3.9 million for the first and second years respectively
