UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO SECTION 13a-16 OR 15d-16
OF THE SECURITIES EXCHANGE ACT OF 1934
For the month of December 2023
Commission File Number: 001-41678
VCI Global Limited
(Translation of registrant’s name into English)
B03-C-8 Menara 3A
KL, Eco City, No.3 Jalan Bangsar
59200 Kuala Lumpur
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover of Form 20-F or Form 40-F:
Form 20-F ☒ Form 40-F ☐
On December 15, 2023, VCI Global Limited, a British Virgin Islands business
company (“VCI” or the “Company”) entered into an asset acquisition agreement (the “Agreement”) with
Nextech3D.AI Corporation (the “Vendor”). Pursuant to the terms and conditions of the Agreement, the Company would acquire
from Vendor: (i) common shares of the Vendor with an aggregate value of Cdn$637,500; and (ii) up to a 51% interest in in a special purpose
vehicle (“SPV”) for CAD12.1 million (the “Acquisition”). The Acquisition is anticipated to be completed through
the transfer of the subject assets outlined in the Agreement by the Vendor to the SPV.
Capitalized terms used but not defined herein
have the meanings ascribed to them in the Acquisition Agreement. A copy of the Acquisition Agreement is attached hereto as Exhibit
10.1 and is incorporated herein by reference. The foregoing summary of the terms of the Consulting Agreement is subject to, and qualified
in the entirety by, such document.
A copy of the Company’s press release dated
December 18, 2023, titled “VCI Global Acquires Proprietary Artificial Intelligence 3d Modeling Platform.” is attached hereto
as Exhibit 99.1 and is incorporated herein by reference.
This Report on Form 6-K and the exhibits hereto,
excluding the statements attributed to the Company’s Chief Executive Officer, are hereby incorporated by reference into the Company’s
Registration Statements on Form F-1, as amended (File No. 333-275239).
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Date: December 21, 2023 |
VCI Global Limited |
|
|
|
|
By: |
/s/ Victor Hoo |
|
Name: |
Victor Hoo |
|
Title: |
Chairman and Chief Executive Officer |
Exhibit Index
3
Exhibit 10.1
CONFIDENTIAL
December 15, 2023
VCI Global Limited
B03-C-8 Menara 3A
KL Eco City, No. 3 Jalan Bangsar
59200 Kuala Lumpur
Re: | Proposed Asset Acquisition by VCI Global Limited |
This letter agreement (this “Agreement”)
sets out the terms and conditions pursuant to which VCI Global Limited (“VCI”) will acquire from Nextech3D.AI Corporation
(the “Vendor”): (i) common shares of the Vendor with an aggregate value of Cdn$637,500 (the “Subject Shares”);
and (ii) up to a 51% interest in the following assets of the Vendor (the “Acquisition”):
| ● | the Vendor’s proprietary artificial intelligence platform
including the technology, patents, know- how, proprietary information, and other intellectual property associated with the platform used
to craft immersive 3D experiences at scale for various e-commerce applications in connection with the Vendor’s 3D modelling business
(“3D Modelling IP”), with further details set out in Appendix 1; and |
| ● | all tangible and intangible assets including contracts, agreements,
work orders etc., (in particular, contracts entered between the Vendor or its affiliates with Amazon Corp. or its affiliates) owned by
the Vendor associated with the foregoing (“3D Modelling Assets”), with further details set out in Appendix 2, |
(collectively, the “Subject Assets”),
all as further detailed herein (the “Transaction”).
The provisions set forth in this Agreement
are intended to create a binding obligation on the parties hereto, unless and until superseded by a definitive agreement giving effect
to the Transaction (the “Acquisition Agreement”). In the event that an Acquisition Agreement is not entered into between
the parties hereto, this Agreement shall govern.
1.
Representations and Warranties of VCI. VCI represents and warrants to the Vendor as of the date
hereof:
| (a) | it is validly existing under the laws of its jurisdiction of existence and is not a reporting issuer in
any jurisdiction of Canada; |
| (b) | the common shares of VCI are listed and posted for trading on the NASDAQ stock exchange (the “NASDAQ”)
under the symbol “VCIG”; |
| (c) | VCI is not currently, and will not be, following the execution, delivery and performance of this Agreement
and any ancillary documents thereto, in violation of (i) any applicable law which violation would have a material adverse effect on VCI
or the Transaction; or (ii) its constating documents; |
| (d) | this Agreement, when executed and delivered by VCI in accordance with the provisions hereof, shall be
a legal, valid and binding obligation of VCI, enforceable against VCI in accordance with its terms; and |
| (e) | no person has any agreement, right or option or anything capable of becoming an agreement, right or option
with VCI for the payment or delivery of any consideration or commission in respect of the transactions contemplated herein. |
2. Representations
and Warranties of the Vendor. The Vendor represents and warrants to VCI as of the date hereof:
| (a) | it is validly existing under the Business Corporations Act (British Columbia) and is a reporting
issuer in each of the provinces of Canada other than Quebec; |
| (b) | the common shares of the Vendor are listed and posted for trading on the Canadian Securities Exchange
(the “CSE”) under the symbol “NTAR”, over-the counter in the USA under the symbol “NEXCF”, and
on the Frankfurt Stock Exchange under the symbol “EP2”); |
| (c) | the Vendor is not currently, and will not be, following the execution, delivery and performance of this
Agreement and any ancillary documents thereto, in violation of (i) any applicable law which violation would have a material adverse effect
on the Vendor or the Transaction; or (ii) its constating documents; |
| (d) | the Vendor is not a party to any other agreement, letter of intent, or understanding with respect to the
sale of all or any part of the Subject Assets other than this Agreement, and there are no other agreements by which Vendor is bound or
to which it is a party, which would entitle any third party to acquire any interest in all or any part of the Subject Assets; |
| (e) | this Agreement, when executed and delivered by the Vendor in accordance with the provisions hereof, shall
be legal, valid and binding obligations of the Vendor, enforceable against the Vendor in accordance with its terms; and |
| (f) | no person has any agreement, right or option or anything capable of becoming an agreement, right or option
with the Vendor for the payment or delivery of any consideration or commission in respect of the transactions contemplated herein. |
3.
Terms of the Acquisition
| (a) | The parties acknowledge that the Acquisition is anticipated to be completed through (i) the transfer of
the Subject Assets by the Vendor to a wholly-owned subsidiary of the Vendor (“Subco”) to be incorporated in a jurisdiction
to be agreed upon by VCI and the Vendor; and (ii) the subsequent transfer of up to 51% of the issued and outstanding shares of Subco (“Subco
Shares”) to VCI in accordance with subsection 3(b) and (d) below. |
| (b) | The aggregate purchase price for the Transaction shall be Cdn$12,750,000 (the “Purchase Price”)
which shall be payable in cash by VCI as follows: |
| (ii) | VCI shall subscribe for the Subject Shares for an aggregate
purchase price of Cdn$637,500 which shall be payable on the closing date of the issuance of the Subject Shares (the “Private
Placement Closing Date”); and |
| (iii) | VCI shall make an aggregate cash payment in the amount of Cdn$12,112,500 to the Vendor in consideration
of the acquisition of 51% of the issued and outstanding shares in the Subco, provided that the Acquisition shall be completed and such
aggregate payment shall be payable in non-refundable tranches (“Tranches”) upon each of the dates set out below, and
subject to subsection 3(d) below, the Vendor shall within five (5) Business Days of each such date, procure the transfer of such number
of Subco Shares to VCI corresponding to the shareholdings percentage set out as follows: |
Tranche | | |
Payment Tranche | | |
Shareholding Percentage (%) | | |
Payment Date |
1 | | |
$ | 637,500 | | |
| 2.7 | | |
On or before 31 January 2024 |
2 | | |
$ | 1,187,500 | | |
| 5.0 | | |
On or before 30 April 2024 |
3 | | |
$ | 1,662,500 | | |
| 7.0 | | |
On or before 30 June 2024 |
4 | | |
$ | 2,450,000 | | |
| 10.3 | | |
On or before 31 July 2024 |
5 | | |
$ | 2,612,500 | | |
| 11.0 | | |
On or before 31 August 2024 |
6 | | |
$ | 3,562,500 | | |
| 15 | | |
On or before 30 September 2024 |
Notwithstanding any other provision
hereof, payment obligations for Tranches 2 – 6 in this Clause 3(b)(ii) shall only commence after the completion of the Transfer
as set out in Clause 3(d) below.
In the event that the Vendor is unable
to complete the Transfer on or before the respective dates set forth above for any of Tranches 2 to 6, the payment date and applicable
Acquisition Closing Date set out in the table above shall be extended for such period as corresponds with the period of delay in completing
the Transfer and each shall be completed promptly after the completion of the Transfer (an “Event of Force Majeure”).
For the avoidance of doubt, VCI’s
decision to subscribe to up to 51% of the Subco Shares is entirely at its discretion, and there exists no obligatory mandate to proceed
entirely with each Tranche of the Acquisition.
| (c) | Following the execution of this Agreement, (i) the Vendor shall immediately disseminate a press release
announcing the Transaction (the “Dissemination”); and (ii) no later than one Business Day following the Dissemination,
the Vendor shall submit a price protection request to the CSE for the issuance of the Subject Shares, the issue price of which shall be
calculated based upon either: |
(i) the thirty
(30)-day volume weighted average price of the common shares of the Vendor on the CSE immediately preceding and inclusive of the date of
Dissemination; or
(ii) the closing
price of the common shares of the Vendor immediately following the date of Dissemination
whichever is lower, subject to CSE’s
permission and the maximum discount allowable by the CSE and in either case subject to a minimum price of $0.12 per Subject Share.
The Private Placement Closing Date
shall take place on a date mutually agreed upon by the parties hereto, but which shall be no later than five (5) Business Days
following the satisfaction of all conditions precedent set forth Section 7(a) and (b) hereof. To the extent permissible under
applicable law, the Subject Shares shall be issued by the Vendor pursuant to National Instrument 45-106 – Prospectus
Exemptions (“NI 45-106”) in accordance with Part 5A thereof (the “LIFE Exemption”) and shall not
be subject to resale restrictions pursuant to applicable Canadian securities laws. To the extent that the Vendor is prohibited from
issuing any portion of the Subject Shares pursuant to the LIFE Exemption, any such Subject Shares shall be issued pursuant to the
accredited investor exemption in Section 2.3 of NI 45-106 and shall be subject to a Canadian statutory hold period expiring on the
date which is four months and one day following the Private Placement Closing Date.
| (d) | The Vendor shall use its commercially reasonable efforts to incorporate Subco and complete the transfer
of the Subject Assets to Subco (“Transfer”) as soon as practicable following the Private Placement Closing Date and
no later than three (3) months following the Private Placement Closing Date, provided however that the parties acknowledge and agree that
the Transfer is subject to certain third party consents which are outside of the control of the Vendor. The completion of each Tranche
(each, an “Acquisition Closing Date”) shall be subject to the satisfaction of all conditions precedent set forth Section
7(c) and (d) hereof as of the applicable Acquisition Closing Date, and the Acquisition Closing Date in respect of the final Tranche shall
be no later than September 30, 2024 (without reference to the cure period set forth in subsection 9.1(c) hereof). |
| (e) | Each of the Vendor and VCI shall use its commercially reasonable efforts to obtain all requisite approvals
of the CSE and NASDAQ or other exchanges that the party’s shares are listed on, respectively, for the Transaction. |
For the purposes of this Agreement, “Business
Day” shall mean any day other than a Saturday, Sunday or any other day that commercial banks are not generally open for business
in Toronto, Ontario and Malaysia.
Notwithstanding anything in this Agreement,
the parties agree to act in good faith to amend the terms of this Agreement subject to mutual agreement if a particular legal structure
is determined by one or both parties hereto to be beneficial or advisable for the purpose of addressing any liability, corporate, securities
or tax concern of the parties, the parties shall, at such time, consider in good faith the available alternatives that would best address
such issue.
4. Exclusivity.
Until the earlier of the final Acquisition Closing Date or the date of termination of this Agreement, the Vendor shall not initiate, propose,
assist or participate in any activities or solicitations in opposition to or in competition with the Acquisition or any part thereof,
and shall negotiate in good faith exclusively with VCI in connection therewith and, without limiting the generality of the foregoing,
shall not induce or attempt to induce any person other than VCI to initiate any proposal, share or asset acquisition or any other form
of transaction inconsistent with completion of the Acquisition, and not to take actions of any kind which may be reasonably expected to
reduce the likelihood of success of the Transaction; and the Vendor shall promptly disclose to VCI any unsolicited offer it has received
of any amalgamation, arrangement, merger, business combination, take-over bid, tender or exchange offer, variation of a take-over bid,
tender or exchange offer, asset or share purchase or similar transaction made to its board of directors or management, or directly to
its shareholders, which may be reasonably expected to reduce the likelihood of success of the Transaction, and shall not negotiate with,
support, recommend or take any steps to effect any such offer.
5. No
Press Release. Until the final Acquisition Closing Date, no press release or other statement regarding the Transaction or this Agreement
shall be issued by either party without the prior written consent of the other party, such consent to not be unreasonably withheld, conditioned
or delayed, as to form, content, timing and manner of distribution or publication, provided that no party shall be prevented from making
any disclosure or announcement which is required to be made by law or pursuant to applicable legislation and the rules and policies of
the CSE or NASDAQ or the U.S. Securities and Exchange Commission. Notwithstanding the foregoing, VCI acknowledges that the Vendor shall
announce the execution of this Agreement and the Transaction by press release (with VCI being provided with an opportunity to review and
comment on such press release in advance of its dissemination) pursuant to subsection 3(c) hereof, and shall be required to describe the
terms of the Transaction in its continuous disclosure filings in accordance with applicable laws and the rules and policies of the CSE.
6. Covenants.
Until the earlier of the final Acquisition Closing Date or the date of termination of this Agreement:
| (a) | the Vendor shall do all things necessary and desirable to ensure that: |
| (i) | no securities of any kind are issued or granted by the Vendor unless such securities are issued or granted
for the purposes of the operation of the Vendor’s business for the year 2024 (which for greater certainty shall include all applicable
operating and/or development expenses, and any financings in connection with any spinout or other corporate transaction which the Vendor
may undertake from time to time) and not for any other purposes such as raising equity capital, to lenders as equity kickers in connection
with debt financings of the Vendor; |
| (ii) | no agreements will be entered into to acquire or dispose of any of the Subject Assets, or to incur or
guarantee any indebtedness on behalf of itself or any third party; |
| (iii) | no dividends or distributions shall be declared relating to any of the Subject Assets; and |
| (iv) | the constating documents of the Vendor are not altered or amended in any manner which may adversely affect
the Transaction; and |
| (b) | the Vendor and VCI will use their reasonable commercial efforts to take all necessary steps to implement the Transaction. |
7.
Conditions to Closing.
| (a) | The Vendor is not required to complete the issuance of the Subject Shares (the “Private Placement”)
unless each of the following conditions is satisfied on or before the Private Placement Closing Date, which conditions are for the exclusive
benefit of the Vendor and may only be waived, in whole or in part, by the Vendor in its sole discretion: |
| (i) | the execution of the Acquisition Agreement in form and substance acceptable to the Vendor, acting reasonably; |
| (ii) | the conditional approval of the Transaction by the CSE and NASDAQ; |
| (iii) | the representations and warranties of VCI contained in the Acquisition Agreement, shall be true and correct
in all material respects as of the Private Placement Closing Date, as if they were made on the Private Placement Closing Date; |
| (iv) | the execution of a license to VCI in respect of the Subject Assets in substantially the form appended
to this Agreement as Schedule A, which shall only come into effect upon payment of the Tranche 1 consideration as set out in Section 3(b)(ii)
above; |
| (v) | material compliance by VCI with the terms of the Acquisition Agreement and any other agreement, instrument
or document entered into or delivered by VCI to effect the Transaction; and |
| (vi) | all proceedings to be taken in connection with the Private Placement shall be satisfactory in form and
substance to the Vendor, acting reasonably, and the Vendor shall have received copies of all instruments and other evidence as it may
reasonably request in order to establish the consummation or completion of such transactions and the taking of all necessary proceedings
in connection therewith. |
| (b) | VCI is not required to complete the Private Placement unless each of the following conditions is satisfied
on or before the Private Placement Closing Date, which conditions are for the exclusive benefit of VCI and may only be waived, in whole
or in part, by VCI in its sole discretion: |
| (ii) | the execution of the Acquisition Agreement in form and substance acceptable to VCI, acting reasonably; |
| (iii) | the conditional approval of the Transaction by NASDAQ (if required); |
| (iv) | completion of a due diligence review of the Vendor and the Subject Assets to the satisfaction of VCI,
acting reasonably, whereby the Vendors shall ensure that all the necessary information to complete the due diligence shall be provided
to VCI; |
| (v) | the representations and warranties of the Vendor contained in the Acquisition Agreement, shall be true
and correct in all material respects as of the Private Placement Closing Date, as if they were made on the Private Placement Closing Date; |
| (vi) | the execution of a license to VCI in respect of the Subject Assets in substantially the form appended
to this Agreement as Schedule A which shall only come into effect upon payment of the Tranche 1 consideration as set out in Section 3(b)(ii)
above; |
| (vii) | material compliance by the Vendor with the terms of the Acquisition Agreement and any other agreement,
instrument or document entered into or delivered by the Vendor to effect the Transaction; |
| (viii) | confirmation from the Vendor that there are no restrictions imposed by the relevant regulatory authority
having jurisdiction over the Vendor (e.g., Canadian Securities Exchange) for the Vendor to enter into this Agreement and to perform the
obligations hereunder in accordance with the terms hereof; |
| (ix) | receipt of a certified copy of the Vendor’s directors’ and the shareholders’ resolutions
(where relevant), authorizing the Vendor to enter into this Agreement and to perform the obligations hereunder; and |
| (x) | all proceedings to be taken in connection with the Private Placement shall be satisfactory in form and
substance to VCI, acting reasonably, and VCI shall have received copies of all instruments and other evidence as it may reasonably request
in order to establish the consummation or completion of such transactions and the taking of all necessary proceedings in connection therewith. |
| (c) | The Vendor is not required to complete each applicable Tranche unless each of the following conditions
is satisfied on or before the applicable Acquisition Closing Date, which conditions are for the exclusive benefit of the Vendor and may
only be waived, in whole or in part, by the Vendor in its sole discretion: |
| (ii) | the Private Placement Closing Date shall have occurred; |
| (iii) | the representations and warranties of VCI contained in the Acquisition Agreement, shall be true and correct
in all material respects as of the applicable Acquisition Closing Date, as if they were made on the applicable Acquisition Closing Date; |
| (iv) | material compliance by VCI with the terms of the Acquisition Agreement and any other agreement, instrument
or document entered into or delivered by VCI to effect the Transaction; |
| (v) | confirmation from VCI that there are no restrictions imposed by the relevant regulatory authority having
jurisdiction over VCI (e.g., NASDAQ) for VCI to enter into this Agreement and to perform the obligations hereunder in accordance with
the terms hereof; |
| (vi) | receipt of a certified copy of VCI’s directors’ and the shareholders’ resolutions (where
relevant), authorizing VCI to enter into this Agreement and to perform the obligations hereunder; |
| (vii) | the conditional approval of the Transaction by the CSE; |
| (viii) | all proceedings to be taken in connection with the Transaction shall be satisfactory in form and substance
to the Vendor, acting reasonably, and the Vendor shall have received copies of all instruments and other evidence as it may reasonably
request in order to establish the consummation or completion of such transactions and the taking of all necessary proceedings in connection
therewith; and |
| (ix) | a shareholders agreement governing the operation of Subco shall be entered into between the Vendor and
VCI, in form and substance acceptable to the Vendor, acting reasonably, and for the parties to contribute any required funding to Subco. |
| (d) | VCI is not required to complete each applicable Tranche unless each of the following conditions is satisfied
on or before the applicable Acquisition Closing Date, which conditions are for the exclusive benefit of VCI and may only be waived, in
whole or in part, by VCI in its sole discretion: |
| (ii) | the Private Placement Closing Date shall have occurred; |
| (iii) | the representations and warranties of the Vendor contained in the Acquisition Agreement, shall be true
and correct in all material respects as of the applicable Acquisition Closing Date, as if they were made on the applicable Acquisition
Closing Date; |
| (iv) | material compliance by the Vendor with the terms of the Acquisition Agreement and any other agreement,
instrument or document entered into or delivered by the Vendor to effect the Transaction; |
| (v) | all proceedings to be taken in connection with the Transaction shall be satisfactory in form and substance
to VCI, acting reasonably, and VCI shall have received copies of all instruments and other evidence as it may reasonably request in order
to establish the consummation or completion of such transactions and the taking of all necessary proceedings in connection therewith; |
| (vi) | a shareholders agreement governing the operation of Subco shall be entered into between the Vendor and
VCI, in form and substance acceptable to VCI, acting reasonably; |
| (vii) | confirmation by the Vendor that no adverse material change in the business, affairs, financial condition
or operations of the Subject Assets shall have occurred between the date of this Agreement and the applicable Acquisition Closing Date;
and |
| (viii) | there being no legal proceeding or regulatory actions or proceedings against the Vendor or the Subject
Assets at the applicable Acquisition Closing Date which may, if determined against the interests of the Vendor or the Subject Assets,
have a material adverse effect on the Subject Assets. |
| (e) | Upon closing of the final Tranche, VCI shall hold 51% of the issued and outstanding shares in the Subco
and VCI’s shareholdings in the Subco shall thereafter, at all times remain at 51% or above (unless otherwise agree by VCI in writing)
and the Vendor shall not take any actions, whether directly or indirectly, that will result in the dilution of VCI’s shareholdings
in the Subco. |
| (f) | For greater certainty, the completion of each Tranche shall be final and binding upon the parties, notwithstanding
that any of the conditions precedent set forth in Sections 7(c) and/or (d) above may not be satisfied in respect of any subsequent Tranche. |
8. Confidentiality.
Except as required by applicable law, VCI and the Vendor will receive and maintain all information received from the other strictly in
confidence and not disclose to any person, other than to its representatives or advisors or make public or authorize the disclosure of
any such information and not use such information for any purpose except to evaluate a mutually agreed transaction among the parties unless:
| (a) | the specific information is now or hereafter publicly disclosed other than as a result of breach of this
provision or, to the knowledge of the applicable party, as a result of breach of any other confidentiality provision; |
| (b) | the specific information was in the possession of the receiving party prior to the disclosure by the disclosing
party; |
| (c) | the specific information is hereafter disclosed to the receiving party by a third party having no obligation
of confidentiality with regard to the information; or |
| (d) | the specific information is independently generated by the receiving party without the use and not as
a consequence of the disclosure by any person or entity. |
If this Agreement is terminated each party
must immediately destroy or return to the other party all confidential information that was furnished to it, without retaining any copy
thereof and provide confirmation in writing by an officer of each party of such destruction. Notwithstanding the foregoing, each party
may retain such copies of confidential information (i) as are required to be retained to comply with law or reasonable and bona fide corporate
governance requirements; and (ii) stored as a result of any routine electronic backup, recovery, business continuity or contingency planning,
or archival systems provided that any materials retained pursuant to this Section 8 will continue to be subject to the restrictions on
the use and disclosure contained herein so long as they are retained.
9.
Termination.
| 9.1 | This Agreement may be terminated by either party: |
| (a) | if the Private Placement Closing Date has not occurred by December 31, 2023; |
| (b) | if the final Acquisition Closing Date has not occurred by September 30, 2024 (without reference to the
cure period in subsection 9.1(c) below or any Event of Force Majeure); |
| (c) | if any of the Tranches have not been completed by the respective dates therefor as set out in Section
3(b)(ii), subject to (i) a 15 days’ notice and cure period; and (ii) any Event of Force Majure, in each case other than with respect
to the final Tranche which shall be completed by September 30, 2023; or |
| (d) | if VCI and the Vendor mutually agree in writing to so terminate it. |
| 9.2 | Vendor shall indemnify VCI, successors and assigns, from and against any and all liens, damages, losses
(other than loss of profits), liabilities, obligations, penalties, claims, litigation, demands, defences, judgments, suits, proceedings,
costs, disbursements or expenses of any kind or of any nature whatsoever (including reasonable solicitor’s fees, consultant’s
fees, expert’s fees, disbursements and other costs of litigation) (collectively, “Losses”) incurred or suffered
by or asserted or awarded against VCI arising by, from or out of, or caused by: |
| (i) | the Vendor’s breach or non-observance or non-performance of any of the covenants, undertakings,
warranties, representations, obligations, restrictions, terms, conditions, agreements and stipulations herein contained; and |
| (ii) | any negligence or recklessness on the part of the Vendor or its employees, servants, or agents. |
In addition to the foregoing indemnity,
in the event that VCI is entitled to an indemnity pursuant to sections 9.2(i) or (ii) above, VCI shall also be entitled to the remedy
of specific performance of this Agreement against the Vendor and to all relief flowing therefrom at the costs and expense of the Vendor
to the extent that such costs are incurred (including solicitors’ fees on solicitors and client basis), without prejudice to any
other remedies that may be available to VCI under applicable laws, provided that the remedy of specific performance and any mitigation
of Losses as a result thereof shall be taken into consideration in calculating any Losses for which the Vendor remains liable pursuant
to the indemnity in this Section 9.2.
For greater certainty, and notwithstanding
any other provision hereof, the parties agree and acknowledge that the Vendor shall have no liability to VCI, and VCI shall have no entitlement
to any remedy for specific performance, in respect of any matters which are outside of Nextech’s control, including the receipt of all
applicable regulatory and stock exchange approvals, and the consent of third party vendors to the Transfer.
10. Access
to Information. VCI and the Vendor shall each be permitted, through its representatives and advisors to conduct customary due diligence
investigations of all aspects of the business, property and affairs of the other party hereto. Each party will allow the other and its
authorized representatives, including legal counsel and consultants, access to all information, books or records and its personnel as
may be reasonably requested. VCI and the Vendor shall also cause its respective directors, employees, accountants and other agents and
representatives to cooperate fully with the other party and its representatives in connection therewith.
11. Conduct
of Business. From the date of the acceptance of this Agreement until the earlier of the completion of the transactions contemplated
herein or the termination date, the Vendor will ensure that the business associated with the Subject Assets is operated in a prudent and
business-like manner in the ordinary course, in a manner consistent with past practice and in compliance the terms hereof.
12. Expenses.
Each party shall bear its respective costs incurred in connection with the preparation, execution, and performance of this Agreement and
the transactions contemplated thereby, including all fees and expenses of agents, representatives, counsel, and accountants.
13. Closing
and Good Faith Negotiations. VCI and the Vendor agree to use commercially reasonable efforts to satisfy all conditions and complete
all transactions contemplated herein as soon as reasonably practicable and no later than (i) September 30, 2024; or (ii) such other date
as may be mutually agreed to in writing between the parties hereto, acting reasonably.
14. Notice.
Any notice or other communication to be given hereunder shall, in the case of notice to be given to the Vendor, be addressed to:
Nextech3D.AI Corporation
Po Box 64039
Toronto RPO Royal Bank Plaza
Toronto, Ontario, M5J 2T6
Canada
Attention: Evan Gappelberg
Email: evan@nextechar.com
and, in the case of notice to be given to VCI, be addressed
to:
VCI Global Limited
B03-C-8 Menara 3A
KL Eco City, No. 3 Jalan Bangsar
59200 Kuala Lumpur
| Email: | datovictor@v-capital.co |
or to such other address as any of the
parties may designate by notice given to the others.
Each notice shall be personally delivered
to the addressee or sent by electronic transmission to the addressee and a notice shall, if delivered prior to 4:30 pm on a Business Day
(local time at the place of receipt), be deemed to be given and received on that day and, in any other case, be deemed to be given and
received on the first Business Day following the day on which it is delivered.
15. Governing
Law. This Agreement and all ancillary documents, wherever possible, shall be governed by and construed in accordance with the laws
of the Province of Ontario and the federal laws of Canada applicable therein.
16. Further
Assurances. Subject to the provisions hereof, each party shall do all such things and execute and deliver all such further documents
and instruments as the other party may reasonably require to give effect to and implement this Agreement and the transactions contemplated
hereunder, all in accordance with their true intent.
17. Currency.
Unless otherwise indicated, all references to “$” or “dollars” shall refer to the lawful currency of Canada.
18. Execution
by Counterpart. This Agreement may be signed in two or more counterparts and by facsimile or PDF.
|
Yours truly, |
|
|
|
Nextech3D.AI Corporation |
|
|
|
|
Per: |
/s/ Evan Gappelberg |
|
|
Authorized Signatory |
THIS
LETTER AGREEMENT is hereby accepted on the terms and conditions set forth herein on 15 December, 2023.
VCI Global Limited |
|
|
|
|
Per: |
/s/ Victor
Hoo |
|
|
Authorized Signatory |
|
Schedule A
License
Agreement
Appendix 1
3D Modelling IP
| 1 | Description of the 3D Modelling IP |
3D Model creation process flow involves
the following steps:
| 1) | Understanding the complexity of the model through 2D Images |
| 2) | Assigning the models a category of the product- such as “Table”,
“Chair”, “Bed”, “Sofa” etc. |
| 3) | Allocating the models to artists to build 3D. |
| 4) | Building a 3D Mesh model using 3D Modeling software such as
Maya. |
| 5) | Texturing the Mesh according to the 2D Picture. |
At Nextech, there are internally developed
AI based software algorithms as IP that are used in parts of the 3D Modeling process. They are:
| 1) | AI based complexity assignment: For Step 1 above, Nextech
has internally developed an AI based complexity assignment software algorithm that is deployed within the Aritize Portal that assigns
complexity automatically. |
| 2) | AI Based category assignment – For step 2 above, Nextech
has internally developed AI based category assignment software algorithm that can assign category for a given 2D image automatically.
This is implemented within the Aritize Portal as well. |
| 3) | Usage of Toggle product for Texturing - Toggle is a separate
product company within Nextech’s portfolio which has its own IP specifically to texture 3D CAD, Mesh models. In our 3D production
there are certain categories of products such as “Fans”, “Lighting fixtures”, “Faucets”, “Mirrors”
which can be textured through Toggle. These categories are about 5-10% of the overall 3D Models we create. Nextech has a licensing agreement
with Toggle for usage of the Toggle technology and pays a license fee per Model that is textured through toggle. The license fee details
can be found in the Licensing agreement between Nextech and Toggle |
Our team of AI data scientists are building
an AI based search algorithm that enables artists to upload a 2D Image and find an appropriate mesh from our database that is already
built. This is still a work in progress, and we estimate this search technology to be available to our 3D artists sometime in January
2024.
|
|
Description |
|
Date
Provisional
Patent Filed |
|
Status of Non-
Provisional Patent
Filing |
|
Jurisdiction |
NEXTECH |
|
CREATING 3D MODELS FROM 2D PHOTOS AND APPLICATIONS -
covers
core AI algorithms for creating 3D models automatically from 2D photos and is the core of Threedy tech |
|
N/A |
|
Non-provisional Utility patent filed in March 2022 |
|
United States |
NEXTECH |
|
EFFICIENT CREATION OF 3D MODEL AND APPLICATION -
covers
the virtual assembly line concept that helps scale 3D content creation from 2D photos |
|
N/A |
|
Non-provisional Utility patent filed in March 2022 |
|
United States |
NEXTECH |
|
MATERIAL ESTIMATION FOR 3D MODELING AND APPLICATION -
covers
the AI/ML techniques for creating 3D textures and materials automatically from 2D reference photos |
|
N/A |
|
Non-provisional Utility patent filed in March 2022 |
|
United States |
NEXTECH |
|
AUTOMATICALLY EXTRACTING TILEABLE UNITS FROM IMAGES -
describes a method for compressing large textures with regular patterns to significantly reduce the size of the texture
files |
|
N/A |
|
Non-provisional Utility patent filed in March 2022 |
|
United States |
NEXTECH |
|
METHODS & SYSTEMS FOR CREATING OPTIMIZED 3D MESHES FROM CAD
DRAWINGS -
describes the technology and process we have built to covert 3D CAD files and other solid designs into optimized 3D
meshes suitable for real-time visualization on the Web and AR |
|
N/A |
|
Non-provisional Utility patent filed in May 2022 |
|
United States |
NEXTECH |
|
AUTOMATIC BACKGROUND REMOVAL FOR HUMAN TELEPRESENCE -
covers
the technologies built into our HoloX app to create holograms without requiring a green screen |
|
N/A |
|
Non-provisional Utility patent filed in May 2023 |
|
United States |
NEXTECH |
|
THREEDIMENSIONAL (3D) MODEL GENERATION
FROM CAD DATA - covers core artificial - intelligence algorithms
for creating 3D models automatically from 2D photos |
|
March 2023 |
|
To be finalized for filing within the next year |
|
United States |
NEXTECH |
|
MATERIAL ESTIMATION FOR THREEDIMENSIONAL (“3D”)
MODELLING - covers the artificial intelligence techniques for creating 3D textures and materials automatically from 2D
reference photos |
|
March 2023 |
|
To be finalized for filing within the next year |
|
United States |
Appendix 2
3D Modelling Assets
| 1. | Service Agreement dated 16 May 2022 entered between Amazon
Development Centre (India) Private Limited and Nextech AR Solutions Corp |
| 2. | Work Order effective 17 January 2023 entered between Amazon.com
Services LLC and Nextech AR Solutions Corp |
| 3. | Aritize 3D platform and associated infrastructure subscriptions
(e.g. MS Azure and AWS) |
| 4. | 3D modelers (employees/contractors) and 3D modeling operational
and development staff |
| 5. | India office lease proportionate to 3D modeling business based
on number of seats used (office is shared with other Nextech related companies) |
| 6. | Other 3D modelling contracts (e.g. Target) and 3D modelling
hosting contracts (revenue) |
| 7. | Toggle – Nextech License Agreement |
| 9. | Social media content (accounts, existing videos) |
| 10. | Computer equipment for 3D modellers and software subscriptions |
| 11. | Shopify, BigCommerce integrations |
Exhibit 99.1
VCI
GLOBAL ACQUIRES PROPRIETARY ARTIFICIAL INTELLIGENCE 3D MODELING PLATFORM
KUALA LUMPUR,
Malaysia, December 18, 2023 (Globe
Newswire) – VCI Global Limited (NASDAQ:
VCIG) (“VCI Global”, or the “Company”)
today announced that it is acquiring a 51% stake in a special purpose vehicle (“SPV”)
for CAD12.1 million. This investment is made in connection with the transfer by Nextech3D.AI Corporation (“Nextech3D.AI”)
of the following assets into the said SPV, namely:-
| 1. | Nextech3D.AI’s proprietary artificial intelligence (“AI”)
3D modeling platform which comes with the technology, patents, know-how, proprietary information, and other intellectual property associated
with the various e-commerce applications in connection with Nextech3D.AI’s 3D modelling business; and |
| | |
| 2. | 3D modeling contracts currently owned by Nextech3D.AI associated with its 3D modeling business. |
Nextech3D.AI’s 3D modeling through its proprietary
AI has received tremendous demand, and to date it has delivered over 50,000 3D models, and counting, to its customers in various e-commerce
industries. This ‘over 50,000’ 3D models translated to a phenomenal two-fold increase from its end 2022’s total of 21,202 3D models delivered.
The surge in demand for its 3D modeling services, in no small part, contributed to Nextech3D.AI’s 97% revenue growth, year on year, for
the first nine months of 2023. Some of Nextech3D.AI’s prominent clients include Amazon, Procter & Gamble, Kohls, Kmart, William
Wood Mirrors and Dyson, just to name a few.
Over the years, there has been an exponential
increase in transforming 2D graphics into 3D, led by rising demand for 3D animations across mobile applications and games. 2D graphics
generally lack the desired depth and are visually flat whilst 3D graphics are able to address the shortfalls of 2D graphics. The increasing
demand is not only confined to mobile applications related segments but to other industries as well such as architecture and the vast
medical field. 3D graphics provide users with more realistic depth and provide users with a better understanding of what is being shown.
3D models have already proven to be a sales growth
driver for e-commerce related businesses, unlike the static 2D models. Nevertheless, the 3D modeling market has yet to experience full
growth potential and vastly considered to be in its infancy stage where the market is expected to grow exponentially. Market analysts
have projected the global 3D modeling market size at between US$1.3 billion to US$1.4 billion in 2022 while more importantly projected
the market to grow by a compound average growth rate of up to 20% until 2030.
“We are ecstatic with the synergy and potential
this acquisition will provide to say the least as this is a game changer for VCI Global. There will literally be infinite contents globally
which need to go ‘3D’. That can only mean massive markets for us to capitalize on,” said Dato’ Victor Hoo, Group Executive Chairman
and Chief Executive Officer of VCI Global.
About
VCI Global Limited
VCI Global is a multi-disciplinary consulting
group with key advisory practices in the areas of business and technology. The Company provides business and boardroom strategy services,
investor relation services, and technology consultancy services. Its clients range from small-medium enterprises and government-linked
agencies to publicly traded companies across a broad array of industries. VCI Global operates solely in Malaysia, with clients predominantly
from Malaysia, but also serves some clients from China, Singapore, and the US.
For more information on the Company, please log
on to https://v-capital.co/.
Cautionary
Note Regarding Forward-Looking Statements
This press release contains forward-looking statements
that are subject to various risks and uncertainties. Such statements include statements regarding the Company’s ability to grow its business
and other statements that are not historical facts, including statements which may be accompanied by the words “intends,” “may,”
“will,” “plans,” “expects,” “anticipates,” “projects,” “predicts,” “estimates,”
“aims,” “believes,” “hopes,” “potential” or similar words. Actual results could differ materially
from those described in these forward-looking statements due to certain factors, including without limitation, the Company’s ability to
achieve profitable operations, customer acceptance of new products, the effects of the spread of Coronavirus (COVID-19) and future measures
taken by authorities in the countries wherein the Company has supply chain partners, the demand for the Company’s products and the Company’s
customers’ economic condition, the impact of competitive products and pricing, successfully managing and, general economic conditions
and other risk factors detailed in the Company’s filings with the United States Securities and Exchange Commission. The forward-looking
statements contained in this press release are made as of the date of this press release, and the Company does not undertake any responsibility
to update the forward-looking statements in this release, except in accordance with applicable law.
CONTACT INFORMATION:
Issued
by Imej Jiwa Communications Sdn Bhd on behalf of VCI Global Limited
For media queries, please contact:
Imej
Jiwa Communications Sdn Bhd
Chris Chuah
chris@imejjiwa.com
VCI Global (NASDAQ:VCIG)
Historical Stock Chart
From May 2024 to Jun 2024
VCI Global (NASDAQ:VCIG)
Historical Stock Chart
From Jun 2023 to Jun 2024