SINGAPORE / KUALA LUMPUR, MALAYSIA – Media OutReach – 21 May 2021 – Enviro-Hub Holdings Ltd (SGX:L23) has announced the proposed acquisition of the remaining 75 per cent share capital of its 25 per cent associated company, Pastel Glove Sdn. Bhd. from existing shareholders (“PGSB” or the “Target“) for a total consideration of S$46.8 million, payable 50 per cent in cash and 50 per cent in new shares in the Company. The Proposed Acquisition shall be subject to, inter alia, the Company and the vendors enter into definitive agreements on terms to be agreed.

Under the term sheet, Enviro-Hub will pay cash consideration of S$23.4 million, and further issue 292,500,000 new shares at a pre-determined issue price of S$0.08 per share for a total subscription price of S$23.4 million. Of the total S$23.4 million cash consideration, 25 per cent (S$5.85 million) will be paid on the completion of the deal and the remaining S$17.55 million will be paid on a staggered basis upon the Target’s achievement of performance guarantee of US$18 million over the period of fiscal years 2021-2023. There will be a one-year moratorium for all the 292,500,000 consideration shares issued during which the consideration shares may not be sold or transferred.

PGSB, which is based in Malaysia, is primarily involved in the manufacture and trading of rubber gloves. Enviro-Hub had made an initial investment in PGSB in January 2021 by way of a subscription of an initial 25 per cent equity stake in the Target for approximately US$0.125 million in equity and the grant of a US$4.875 million interest-free shareholders’ loan to PGSB.

As previously announced by the Company on 16 March 2021, in February this year, PGSB had installed and commissioned its first automated glove-dipping line. A total of six production lines with an expected production capacity of 1.42 billion gloves per annum are expected to be operational by September 2021.

Following the acquisition, the founders of PGSB, Mr. Law Siau Woei, and Mr. Choo Kuan Ping, will remain in charge. The founders have over 20 years of experience in the gloves manufacturing industry. Prior to setting up PGSB, Mr. Law and Mr. Choo were involved in the glove supply business as traders, with a network of global multinational customers. Once the deal is completed, Mr. Law will be substantial shareholder in Enviro-Hub, thus aligning his interest strongly with shareholders of EHH.

“The COVID-19 pandemic has resulted in an unprecedented increase in the demand for gloves and Personal Protective Equipment (PPE), due to the increasing usage of gloves to protect healthcare professionals, and the heightened hygiene standards at Food and Beverages (F&B) establishments, hospitality, and travel sectors. The recent resurgence in global COVID-19 cases and supply shortage in the US will continue to support elevated average selling prices (ASPs) for gloves, which bodes well for glove makers,” Adrian Toh, Enviro-Hub’s Chief Investment Officer (“CIO”) said.

According to Hong Leong Investment Bank^[1], demand for rubber gloves is expected to remain elevated with their increased usage in vaccination programmes around the world more than offsetting the decline in gloves used for testing. This will help to keep ASPs high as there remains a supply shortage of gloves of about 12.4 billion for 2021 despite new entrants and industry players ramping up production capacities. Hong Leong Investment Bank estimates that global herd immunity could take as long as 5 years, and this could provide support for glove demand in the medium term.

“Once the deal is completed, the Group will have absolute control of the lucrative glove operation of PGSB which will not only generate a strong bottom-line but also positive cash flow. The cash flow will help the Group expand its new healthcare products business line. The management team from PGSB has a wealth of experience in the PPE business and they are committed to growing the healthcare products business division in Enviro-Hub rather than just focusing on PGSB. Their know-how in sophisticated clean room and medical gloves set-up will aid our expansion efforts by way of acquisition and/or organic growth in our healthcare products business line,” Executive Chairman of Enviro-Hub, Mr. Raymond Ng (“Mr. Ng”) said.

The Executive Chairman noted that the proposed PGSB acquisition is in line with Enviro-Hub’s strategy of pivoting its business towards healthcare products supply and trading, and recycling & refining E-waste/metals to provide additional and recurring revenue streams for the Group. “Going forward our focus will be on, PPE products such as latex and nitrile gloves for medical and industrial use. We will also focus on medicine, medical consumables, and other healthcare-related products,” Mr. Ng said.

On 18 May 2021, the Company had also announced that its 51 per cent indirectly owned subsidiary, QF 4 Pte. Ltd. had, on 14 May 2021, granted an option to purchase to Extra Space Hillview Pte. Ltd., for Extra Space Hillview Pte. Ltd to purchase its property units at Lam Soon Industrial Building at a consideration of approximately S$35.3 million. Please refer to the Company’s announcement dated 18 May 2021 for further information on the grant of the said option to purchase.

Note to media: Please read this press release in conjunction with the Company’s announcement released on SGXNet.

About Enviro-Hub

Singapore-listed Enviro-Hub Holdings Ltd (“Enviro-Hub“) has a diverse portfolio that includes trading, recycling and refining of e-waste/metals, piling contracts, construction, rental and servicing of machinery, property investments and management, as well as plastics to fuel refining. In 2021, Enviro-Hub diversified into the healthcare business with its investment in Malaysian glove manufacturer, Pastel Glove Sdn. Bhd., marking the Group’s foray into the glove manufacturing and healthcare consumables sectors.

For more information, please visit us at http://www.enviro-hub.com/

#Enviro-Hub

HONG KONG SAR – Media OutReach – 21 May 2021 – Gautam Param and Leon Chen started meal replacement company Sustenance to solve this key issue that most of us are facing – “I wanted a simple way to eat healthy without putting my diet at the center of my life. I didn’t like other options in the market, they had lots of artificial junk and were too far away from nature to be considered an actual meal.”

Sustenance’s extra-rich cacao shakes

Noting this gap in the market, the duo wanted to offer people with minimally processed products that use real food ingredients from premium suppliers. Their products contain plenty of protein and fiber and minimal bad stuff like saturated fat and artificial junk.

“The idea behind Sustenance is simple — we want to make it simple and painless for people to eat healthy. We want to empower people to lead healthy, disease-free lives without having to put diets at the centre of their lives,” said Gautam.

Gautam added that Sustenance is suitable for time-starved people like busy workers who prefer quick, yet healthy meals. There are also some who turn to Sustenance to incorporate it as part of their diet to lose weight.

The winning factor of Sustenance over a conventional meal is its convenience. If you are short on time, can’t find affordable options or healthy food around you, then Sustenance’s meal shakes make a good alternative to unhealthy food.

“Science has established that consistently eating healthy is a behavioural problem, not a knowledge problem. People know what eating healthy means, but they struggle with doing it consistently in the long run because of the hassle.”

“Nobody wants to spend their lunch break queuing (up for food), spend a bomb eating grain bowls every day, or spend an hour cooking and cleaning up during weekdays. If we can reduce the friction to eating healthier, many people would eat healthier more consistently.”

This is the unique proposition of meal replacements – they serve as a “backup option” that is readily available anytime, anywhere.

Most of their customers started out as non-believers who never tried any meal replacements before. However, after buying and trying their products, they instantly became converts.

“These people who were initially on the fence end up being regular customers and making many repeat purchases. They would then recommend it to their family and friends — this is our main source of growth.”

Its pool of customers has grown to several thousands over the past 12 months, and its products are rated 4.9 out of 5.0 stars across hundreds of reviews on Google and Facebook. Many of these reviews talk about the unexpected deliciousness of the shakes despite its green appearance, and how filling they are.

The company has grown by more than six times in 2020 and started selling in Hong Kong and Australia in March 2021. They plan on entering two more markets by the end of 2021.

#Sustenance