Beleaguered company Innopac Holdings announced that its wholly-owned subsidiary Awana Rentak has entered into a memorandum of understanding (MOU) with Malaysian developer Wanland Metro in relation to a joint venture to develop land in Tanjung Malim, Perak, Malaysia.
Awana Rentak currently owns 48.4 acres of industrial land in Tanjung Malim, which it has unsuccessfully tried to sell in the last two years.
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Wanland Metro has proposed a joint venture in which the developer will develop the land at their sole expense into an industrial park, whereupon Awana Rentak will be entitled to 30% of the gross revenue of the development.
The MOU is non-binding, with a legally binding joint venture agreement expected to be signed within 90 days of the MOU date.
Innopac, which is linked to John Soh Wee Chen and the penny stock saga, says that the proposed development is the best option given current market conditions for the land and Innopac’s “operating and financial predicament”.
In its filing to SGX on June 10, Innopac noted that it has been operating without funds, management and staff since August 2019 and is being overseen by the two current independent directors who were appointed then.
