Reference is made to the Company’s announcement dated 15 March 2024 ("Previous Announcement"). Unless otherwise stated, all defined terms used in this announcement shall carry the same meanings as defined in the Previous Announcement.

The Board of Directors of Komarkcorp wishes to provide additional information pertaining to the rationale for the investment. Generally, the recent investment is a two prong strategies formulated by Komark‘s management with the aim to safeguard both Komark and its shareholders interest:-

1. From the capital management perspective, Komark will be able to maintain its strategic substantial equity stake in D'nonce of 10.507% and at the same time it provides an avenue for Komark to up its investment in D’nonce in the future via its Rights Warrants stake. The pricing for both Rights Issue and Warrant Conversion are attractively price at RM0.0204 or 18.48% discount to the TEAP of D’nonce market price and as such, there is an immediate potential capital return to the recent investment if Komark choose to liquidate its position in the market.  
2. Operationally, both Komark and D’nonce businesses complement each other and by forming business collaboration, it will provide an immediate avenue for Komark to secure new business and at the same time, it will benefit D’nonce in term of cost savings (from economy of scale, logistic and raw materials). D’nonce has also diversified into manufacturing and selling of self-adhesive labels ("D'nonce new business") recently which is cohesive to Komark existing labelling business. It is anticipated the business volume for labelling will increase tremendously and hence, D’nonce will be able to complement and provide the synergies needed to Komark for the surge in business volume. In addition, D’nonce new business will provide an immediate platform for Komark to expand its market shares in the labelling industry locally as with the business tie up, D’nonce will be able to outsource its labelling business orders to Komark which has existing machines to cater to the orders.

This announcement is dated 18 March 2024.