Singapore, 12 July 2021 &ndash KTL Global Limited (&ldquo KTL&rdquo or the &ldquo Company&rdquo , and together with its subsidiaries, the &ldquo Group&rdquo ), is pleased to announce that it has entered into a Memorandum of Understanding (&ldquo MOU&rdquo ) to acquire a 51% equity stake in Ebuy Pte Ltd (&ldquo EBUY&rdquo ) for approximately S$1.476 million which will be satisfied by the issuance of new ordinary shares of the Company, subject to any changes and the finalised terms in the definitive agreement(s) to be entered into by parties in relation to the Proposed Acquistion.

 

An established e-commerce company in Singapore, EBUY is a leading distributor of fresh produce in Singapore, including daily fresh vegetables and fruits, to food service providers, retailers, restaurants and hotels. With its fulfilment centre at the western region of Singapore, EBUY has built up its own logistics supply chain network with a fleet of delivery vehicles. In addition, EBUY has a mobile application that serves as an online supermarket for consumers, offering a wide range of groceries.

 

The proposed acquisition is subject to the approval of shareholders of the Company at an extraordinary general meeting to be convened (the " EGM" ) and the approval of the Singapore Exchange Securities Trading Limited.

 

In June 2021, KTL completed the acquisition of Tianci Agritech Pte Ltd (&ldquo Tianci Agritech&rdquo ) for S$0.2 million, marking its first foray in the fresh produce business. Tianci Agritech is engaged in the business of supplying and distributing vegetable and fruits produce to various consumer groups in Singapore and it has secured key supply contracts with suppliers of vegetable produce in Malaysia.

 

More recently, Tianci Agritech has procured nearly 18 containers of fresh produce and consumer products to be distributed and marketed in Singapore. The fresh produce and consumer products are sourced and procured mainly from Shandong Province, China, which is a leading agriculture hub in China. Key agricultural products includes apples, peanuts and vegetables, among others. 

 

Offering more options to Singapore consumers, Tianci Agritech will be bringing in popular Chinese brands and products from prominent Chinese consumer product manufacturers, such as 山 东 鲁 花 集 团 and 泰 祥 集 团 , which have produced a wide variety of delectable consumer products.

 

 

Based on preliminary research conducted, the Company&rsquo s management has observed that the food  demand and consumption in Singapore has been on a general uprising trend, and the Group expects  such trend to continue to increase albeit the rate of increase potentially varying over periods of time.

 

The expected increase in demand in food consumption in Singapore is likely to increase demand for  raw and/or perishable food products (such as vegetable and food produce and livestock) which may  in turn allow the Group to tap into the expanding consumer market.

 

Due to Singapore being a small country with limited resources and notwithstanding existing efforts to  boost local food production, a majority of raw food material such as vegetables and food produce as  well as livestock are still imported from overseas. Overseas suppliers may also present cheaper  alternatives than local food produce. This presents an opportunity for the Group to keep its costs low  and compete with other similar local suppliers.