Sale of Platform in East Johor Strait

Further to previous announcements made by the Board of BPH Global Ltd (ASX: BP8) (Company) regarding its strategic review of the Company’s seaweed operations, the Board is pleased to announce that the Company has entered into an agreement for the sale of the floating platform in the East Johor Strait.

Highlights

• BP8 sells the floating platform in the East Johor Strait.
• Sale proceeds a boost to the Company’s cashflow position
• Relocation of seaweed R&D activity

The Company’s ongoing strategic review of its seaweed operations has included an in-depth, thorough review of the viability of the floating platform in the East Johor Strait. It has been a significant legacy issue for the new management team since the Company re-commenced trading on the ASX in late March this year.

The floating platform is owned by SCU-RY Farm Pte. Ltd. (SCU-RY), a joint venture company incorporated for the purpose of acquiring and operating the floating platform. The BP8 Group through the Singapore-based subsidiary Stemcell United Pte. Ltd. (SCU-SG) holds 70% of the issued capital of SCU-RY, and Rong-Yao Fisheries Pte. Ltd. (RY) the remaining 30% (in aggregate, the Sale Shares).

In conducting its review of the viability of the floating platform, the Company considered a range of potential options, including: operation of the platform in its current position; dismantling the platform or selling the platform to a third party.

Operating the platform for the purposes of growing seaweed would have cost the Company approximately SGD15,000 per month, a very significant sum given the challenges the Company endured in its efforts to farm seaweed on a commercial basis in the East Johor Strait. The Board concluded that seaweed could not be cultivated and harvested on a commercial basis in the East Johor Strait. Dismantling the platform would have cost a minimum of SGD150,000. Given these alternatives, the Company focused its efforts on locating a buyer for the platform.

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