Form 8-K
8-K — TREASURE GLOBAL INC
Accession: 0001213900-26-080028
Filed: 2026-07-21
Period: 2026-07-20
CIK: 0001905956
SIC: 7389 (SERVICES-BUSINESS SERVICES, NEC)
Item: Entry into a Material Definitive Agreement
Item: Unregistered Sales of Equity Securities
Item: Financial Statements and Exhibits
Documents
8-K — ea0298752-8k_treasure.htm (Primary)
EX-10.1 — SHARE SALE AGREEMENT, DATED JULY 20, 2026, BY AND AMONG WONG LAI HOONG, CHAN CHEE KAE, ANGIE WONG LAI MUN, ONG SI ZHONG AND TADAA CAPITAL SDN. BHD (ea029875201ex10-1.htm)
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8-K — CURRENT REPORT
8-K (Primary)
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported):
July 20, 2026
TREASURE GLOBAL INC
(Exact name of registrant as specified in its charter)
Delaware
001-41476
36-4965082
(State or other jurisdiction
of Incorporation)
(Commission File Number)
(IRS Employer
Identification Number)
276 5th Avenue, Suite 704 #739
New York, New York
10001
(Address of registrant’s principal executive office)
(Zip code)
+6012 643 7688
(Registrant’s telephone number, including
area code)
Not Applicable
(Former name or former address, if changed since
last report)
Check the appropriate box below if the Form 8-K
filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General
Instruction A.2. below):
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b)
of the Act:
Title of each class
Trading symbol(s)
Name of each exchange on which registered
Common Stock, par value $0.00001 per share
TGL
The Nasdaq Stock Market LLC
Indicate by check mark whether the registrant
is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the
Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check
mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting
standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 1.01 Entry into a Material Definitive
Agreement.
On July 20, 2026, Tadaa Capital Sdn. Bhd. (the “Purchaser”),
a subsidiary of Treasure Global Inc (the “Company”) entered into a Share Sale Agreement (the “SSA”) with Wong
Lai Hoong, Chan Chee Kae, Angie Wong Lai Mun and Ong Si Zhong a Malaysian company that operates under the name “Cigar Secret”
and is principally engaged in the retail sale of tobacco products in specialized stores and the wholesale of tobacco, cigars and cigarettes,
as vendors (collectively, the “Vendors”). The SSA provides for the Purchaser’s acquisition of 149,880 ordinary shares
of Cigar Secret Sdn. Bhd. (Cigar Secret”), representing approximately 80% of Cigar Secret’s enlarged total share capital,
following completion of the proposed capitalization described in the SSA.
The purchase consideration under the SSA is RM2,500,000
(approximately US$611,955.10). The SSA provides that RM2,250,000 (approximately US$550,795.60) of the purchase consideration is payable
as a deposit upon execution of the SSA, and that the remaining RM250,000, representing 10% of the purchase consideration, is payable as
the balance purchase consideration in accordance with the SSA. Each Vendor is entitled to 25% of the purchase consideration.
The closing of the transactions contemplated by
the SSA is subject to the satisfaction or waiver of certain conditions precedent on or before August 31, 2026, subject to a potential
extension not exceeding 60 days from the original long stop date. These conditions include, among other things, the Purchaser’s
satisfaction with due diligence, execution of the escrow agreement, confirmation of the purchase consideration and valuation by an independent
valuer appointed by the Purchaser, receipt of required approvals, confirmation of no material adverse change in Cigar Secret, completion
of the proposed capitalization, and the continued accuracy of the parties’ representations and warranties in all material respects.
The SSA provides that completion will occur on
the date on which the Purchaser is registered as the proprietor of the sale shares in Cigar Secret’s register of members, the relevant
share certificates are cancelled and reissued in favor of the Purchaser, and specified resignations of certain current directors are delivered
after or concurrently with the appointment of the Purchaser’s nominee directors. Upon completion, the Purchaser is entitled to exercise
majority control and management of Cigar Secret, including the right to appoint directors, officers and authorized signatories in accordance
with the shareholders’ agreement contemplated by the SSA. The parties are required to negotiate in good faith and execute a shareholders’
agreement within 60 days after completion, or such longer period as the Purchaser may agree in writing, although completion is not conditional
on the execution of that shareholders’ agreement.
The SSA contains customary representations, warranties,
covenants and indemnities. The SSA also contains non-competition and non-solicitation covenants applicable to the Vendors and specified
related persons for a period commencing on the calendar day immediately following completion and ending on the fifth anniversary of the
completion date.
The SSA may be terminated in specified circumstances,
including upon certain material breaches, material adverse changes, insolvency events, failure of conditions precedent by the long stop
date, illegality or invalidity of the SSA in its entirety, or other events of default set forth in the SSA. If the Purchaser terminates
the SSA due to a Vendor event of default, the SSA provides that the Vendors must refund the deposit and other monies paid by the Purchaser
within seven days, return any shares of the Company issued in satisfaction of the balance purchase consideration, and pay an amount equal
to the deposit as liquidated ascertained damages, without prejudice to other remedies. If the Vendors terminate due to a Purchaser event
of default, the SSA provides that the deposit paid by the Purchaser will be forfeited and retained by the Vendors as liquidated ascertained
damages.
The SSA is governed by the laws of Malaysia, and
each party submits to the exclusive jurisdiction of the courts of Malaysia. The SSA permits disclosure of confidential information where
required by applicable law, stock exchange rules, a securities exchange, or a regulatory or governmental body to which a party is subject.
The foregoing description of the SSA does not
purport to be complete and is qualified in its entirety by reference to the full text of the SSA, a copy of which is filed as Exhibit
10.1 to this Current Report on Form 8-K and incorporated herein by reference.
1
Item 3.02 Unregistered Sales of Equity Securities.
Pursuant to the SSA, if the Purchaser elects to satisfy the RM2,250,000
(approximately US$550,795.60) deposit by way of shares of common stock of the Company, the deposit will be satisfied through an escrow
realization payment scheme. Under the SSA, the number of escrow shares is calculated by converting the deposit into U.S. dollars using
the Bank Negara Malaysia middle rate on the last trading day immediately preceding the agreement date and dividing that amount by the
closing price per share of common stock of the Company on the Nasdaq Stock Exchange on the last trading day immediately preceding the
agreement date, with fractional shares rounded down. The escrow shares are subject to a six-month trading restriction and are to be sold
following the restricted period in accordance with the escrow agreement, with the sale proceeds applied toward payment of the deposit.
The securities, if issued, will be issued in a
transaction exempt from registration by Regulation S promulgated under the Securities Act of 1933, as amended.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
Exhibit No.
Description
10.1*
Share Sale Agreement, dated July 20, 2026, by and among Wong Lai Hoong, Chan Chee Kae, Angie Wong Lai Mun, Ong Si Zhong and Tadaa Capital Sdn. Bhd.
104
Inline XBRL for the cover page of this Current Report on Form 8-K
* Certain personally identifiable information has been omitted
from this exhibit pursuant to Item 601(a)(6) of Regulation S-K.
2
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: July 21, 2026
TREASURE GLOBAL INC
By:
/s/ Chong Chan “Sam” Teo
Name:
Chong Chan “Sam” Teo
Title:
Acting Chief Executive Officer
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EX-10.1 — SHARE SALE AGREEMENT, DATED JULY 20, 2026, BY AND AMONG WONG LAI HOONG, CHAN CHEE KAE, ANGIE WONG LAI MUN, ONG SI ZHONG AND TADAA CAPITAL SDN. BHD
EX-10.1
Filename: ea029875201ex10-1.htm · Sequence: 2
Exhibit 10.1
Dated 20 July 2026
WONG LAI HOONG
(NRIC.: 911112-10-5964)
CHAN CHEE KAE
(NRIC.: 921028-14-5081)
ANGIE WONG LAI MUN
(NRIC.: 901127-10-5124)
ONG SI ZHONG
(NRIC.: 920406-14-6213)
(“COLLECTIVELY, THE “VENDORS AND
EACH A “VENDOR”)
AND
TADAA CAPITAL SDN BHD
(Company Registration No. 202501039949 (1641358-K))
(“PURCHASER”)
SHARE SALE AGREEMENT
THIS SHARE SALE AGREEMENT is made on this
day of 20 July 2026 (“Agreement Date”)
BETWEEN
(1) WONG LAI HOONG (NRIC.: 911112-10-5964), a Malaysian citizen and residing at 11A, Jalan SS 5C/10
Kelana Jaya, 47301, Petaling Jaya, Selangor (“WLH”);
(2) CHAN CHEE KAE (NRIC.: 921028-14-5081), a Malaysian citizen and residing at A-40-10, Menara Vista
Petaling, No. 137 Jalan Puchong, Mukim Petaling, 58200 Kuala Lumpur (“CCK”);
(3) ANGIE WONG LAI MUN (NRIC.: 901127-10-5124), a Malaysian citizen and residing at A-27-08, Residensi
Sunway Serene, Jalan SS8/2, 47300 Petaling Jaya, Selangor (“AWLM”);
(4) ONG SI ZHONG (NRIC.: 920406-14-6213), a Malaysian citizen residing at 11, Jalan Taman Garing Jaya,
Taman Garing Jaya, 48000 Rawang, Selangor (“OSZ”);
AND
TADAA CAPITAL SDN BHD [Registration No. 202501039949
(1641358-K)], a company incorporated in Malaysia having an address for service at No. 29, Jalan PPU 2A, Taman Perindustrian Pusat
Bandar Puchong, 47100, Puchong, Selangor, Malaysia (“Purchaser”);
(Each of WLH, CCK, AWLM, and OSZ shall be known
as “Vendor” and collectively as “Vendors”)
(Each of Purchaser and Vendor shall be known as
“Party” and collectively as the “Parties”)
RECITALS:
(A) Cigar Secret Sdn Bhd [Company Registration No. 202301033567 (1527490-K)] (hereinafter referred
to as “CSSB” or “the Company”) is a company incorporated in Malaysia with registered address at No. 192-3rd
Floor, Jalan Changkat Thambi Dollah, Kuala Lumpur Wilayah Persekutuan and/or business address at Lot 8-5A, Plaza Batai, Jalan Batai, Damansara
Heights 50490 Kuala Lumpur and has at the Agreement Date an issued and paid-up share capital of Ringgit Malaysia One Hundred (RM100.00)
consisting of one hundred (100) units of ordinary shares issued at Ringgit Malaysia One only (RM1.00) each, held by the Vendors in equal
proportions (“Current Total Share Capital”). The Company is principally engaged in the retail sale of tobacco products in
specialised store and wholesale of tobacco, cigar, cigarettes (“Current Business”). Pending completion of the sale and purchase
of the Sale Shares (as defined hereunder) contemplated under this Agreement, the Company shall continue to operate the Current Business
under the name and style of “CIGAR SECRET”.
(B) The Vendors are the legal and beneficial owners of the Current Total Share Capital in equal proportions.
Subject to and conditional upon the Proposed Capitalisation (as defined hereunder) being effected, each Vendor has agreed to sell, and
the Purchaser has agreed to purchase, that portion of the ordinary shares in the Company representing in aggregate approximately eighty
per centum (80%) of the Enlarged Total Share Capital (as defined hereunder), upon the terms and subject to the condition contained in
this Agreement.
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(C) The Parties acknowledge and agree that the purpose of the Purchaser’s purchase of the Sale Shares
is to acquire a majority equity interest in the Company and majority control over the Company including the Current Business. Accordingly,
the sale and purchase of the Sale Shares shall be treated as one single composite transaction and shall not be construed as separate or
independent sales of the respective ISCB (as defined hereunder), and the Purchaser will not purchase part of the Sale Shares. In the event
that due to whatsoever reasons the sale of any individual Share Capital Block of any individual Vendor is unable to proceed, the sale
and purchase transaction herein contemplated shall be terminated or otherwise be dealt with in accordance with this Agreement.
IT IS AGREED as follows:
1. Definitions
1.1 In addition to the terms defined in the Recitals and elsewhere in this Agreement, the following capitalised
terms shall have the following meanings in this Agreement except where the context otherwise requires:
Affiliates
in relation to any person, means any other person that directly or indirectly through one or more intermediary’s controls or is controlled by, or is under common control with, that first-mentioned person and where such person is an individual, the expression shall include the spouse, children, siblings and parents of such individual
Accounts Date
means the date to which the latest Audited Accounts have been prepared;
Applicable Laws
means with respect to any person, any and all applicable constitutions, treaties, conventions, statutes, laws, by-laws, regulations, ordinances, codes, rules, rulings, judgments, rules of common law, orders, decrees, awards, injunctions or any form of decisions, determinations or requirements of or made or issued by, governmental, statutory, regulatory, administrative, supervisory or judicial authorities or bodies or any court, arbitrator or tribunal with competent jurisdiction, whether in Malaysia or elsewhere, as amended or modified from time to time, and to which such person is subject
3
Audited Accounts
means the audited balance sheet as at the Accounts Date and the audited profit and loss accounts for the year ended on the Accounts Date of the Company and the directors’ report and notes thereto;
Balance Purchase Consideration
has the meaning as ascribed in Clause 4.3
Business Day
means any day other than a Saturday, Sunday or public holiday on which commercial banks are open for business in Kuala Lumpur and Selangor, Malaysia;
Companies Act
means Companies Act 2016 [Act 777];
Claim
means any notice, demand, assessment, letter or other document issued or action taken by any revenue or taxing authority in Malaysia or elsewhere or other statutory or governmental authority, body or official whatsoever (whether of Malaysia or elsewhere in the world) whether issued or taken before or after Completion, whereby the Company or the Purchaser are or may be placed or sought to be placed under a liability or to make a payment or deprived of any relied, rebate, set-off, allowance, credit or repayment provided always that such liability or deprivation arises from or relates to the Company’s income, transaction, event, act or omission occurring prior to or on Completion
Completion
means the actual completion of the sale and purchase of the Sale Shares pursuant to Clause 6.5;
Completion Date
means the day Completion occurs as stipulated in Clause 6.5.1;
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Confidential Information
means all information of the Parties and the Company, the Company’s subsidiaries and/or Affiliates, and the Company’s employees and such other information labelled as ‘Confidential’, ‘Private and Confidential’, ‘P&C’ or with any other similar phrases or words by any Party, in any and all mediums, whether oral, written or otherwise, including but not limited to, details of the prospective investors and members, any data, manner of operations of business, standard operational procedures, policies, procedures, fees structures, ideas, techniques, programs, marketing strategies, marketing information, financial information, marketing plans, prospective leads, advertising plans, business analysis, any written or oral data, files, agreement, contract, memorandum, any negotiation record on any device, any information and forecasts, technology, research, know-hows, inventions, discoveries, designs, processes, formulations, models, equipment, arithmetic, algorithms, software programs, interfaces, documents, ideas, concepts, specifications, information concerning research and development work, trade and/or business secrets, current, planned or proposed products, marketing and/or business plans, forecasts, projections and analyses, financial statements, financial information, proprietary information, prices, customer information, customer-client relationship, site information and intellectual property rights
Constitution
means the document as defined in Section 34 of the Companies Act 2016;
Deposit
has the meaning ascribed in Clause 4.2
Encumbrance
means any mortgage, charge (whether fixed or floating), pledge, lien, assignment of receivables, title, encumbrance, hypothecation, security interest, title retention or other security arrangement of any kind or any other encumbrance of any nature whatever;
5
Enlarged Total Share Capital
means the issued and paid-up share capital of the Company upon completion of Proposed Capitalisation
Escrow Agreement
means written agreement between the Vendors, Purchaser and Escrow Agent with respect to arrangement of the Escrow Realisation Payment Scheme
Escrow Realisation Payment Scheme
the mechanism to settle Balance Purchase Consideration as particularised in Clause
Escrow Realisation Period
means the period commencing from the Unconditional Date and expiring on the seventh (7th) from the Unconditional Date, within which the Balance Purchase Consideration shall be fully settled by the Purchaser in accordance with the Escrow Realisation Payment Scheme, and such period shall not be extended unless otherwise agreed by the Vendors and Purchaser in writing;
“Individual Share Capital Block” or “ISCB”
has the meaning ascribed in Clause 2.2
Leakages
means any of the following matters occurring during the period from the Locked Box Date up to and including Completion:
(a)
declare, pay or make any dividend or distribution to the Vendors or any of their associates;
(b)
make any payment, transfer any asset, or assume any liability in favour of the Vendors or any of their associates, other than Permitted Leakage;
(c)
make any withdrawal from or transfer out of any bank account of the Company, other than Permitted Leakage;
(d)
waive, discount, set off or release any amount owed to the Company by the Vendors or any of their associates;
6
(e)
pay or agree to pay any management, consultancy, monitoring or similar fee to the Vendors or any of their associates;
(f)
make any loan or advance to any person from the Company’s funds, or give any guarantee, indemnity or security in respect of any obligation of any person;
(g)
enter into, amend or terminate any contract or arrangement with the Vendors or any of their associates otherwise than in the ordinary course of business and on arm’s length terms;
(h)
create, issue, allot, redeem, purchase or reduce any share capital of the Company;
(i)
incur any capital expenditure or commitment other than trade debt, operational liabilities, financing or expenditure incurred or arising in the ordinary course of business and consistent with past practices; or
(j)
agree, conditionally or otherwise, to do any of the matters reference in sub-paragraphs (a) to (i) above
Locked Box Account
means collectively, the audited financial statement of the Company for the financial year ended on the Locked Box Date which has been reviewed by the Purchaser, as annexed in Schedule 1
Locked Box Date
means 31st January 2026
Long Stop Date
means 31st August 2026 or such other date as the Purchaser may notify the Vendor in wring provided that such extension shall not exceed sixty (60) days from the original Long Stop Date
7
Losses
means any and all losses, damages, actions, proceedings, claims, liabilities, penalties, fines, costs, charges and expenses (including, without limitation, all costs and expenses incurred in disputing or defending any of the foregoing on a full indemnity basis) excluding damages for indirect consequential losses;
Material Adverse Change
means an event which has or would reasonably be expected to have a Material Adverse Effect
Material Adverse Effect
means material adverse effect in relation to the affairs, operations, businesses, properties, regulatory changes, loss of key contracts, financial condition (including liabilities, assets and results) and/or prospects of any of the Company, that has caused or is reasonably likely to cause the net asset value of the Company to decrease by more than 20% from that set forth in the Locked Box Account
Permitted Leakage
means:
(a)
any payment made by the Company which has been specifically accrued or provided for in the Locked Box Account;
(b)
any payment by the Company in respect of goods and services supplied by the Company in the ordinary course of business and consistent with past practice;
(c)
the payment by the Company of salaries, wages, statutory contributions and other remuneration to employees and officers of the Company which the Company is contractually or statutorily required to pay in the ordinary course of business, consistent with past practices;
(d)
any payment of rent, utilities, insurance premiums, license fees and other recurring operating expenses of the Company in the ordinary course of business;
(e)
any payment of taxes due and payable by the Company under applicable laws;
(f)
any transaction expressly contemplated by or undertaken pursuant to this Agreement; and
(g)
any payment or transaction expressly approved in writing by the Purchaser
Proposed Capitalisation
has the meaning ascribed in Clause 3.2(g)
Purchase Consideration
has the meaning ascribed in Clause 4.1;
Restricted Period
means the period of six (6) months from the date of issuance and allotment of the TGI Shares or Escrow Shares (whichever applicable) to the Escrow Agent;
Sale Shares
has the meaning ascribed in Clause 2.2 and 2.3
Stamped STF
means stamped share transfer form (s)
“Share Transfer Form” or “STF”
means share transfer form(s)
8
“Tax”, “Taxes” and “Taxation”
includes:
(a)
all forms of taxation, duties, imposts, levies, rates or other statutory, governmental or local governmental impositions of whatsoever nature whenever created or imposed in Malaysia or elsewhere, including income tax, property tax, real property gains tax, capital gains tax, capital duty, stamp duty, service tax, goods and services tax, value added tax, sales tax, payroll tax, withholding tax, rates, customs and excise duties, regional or local taxes, municipal taxes, and generally any tax, duty, impost, levy or rate or any amount payable to the revenue, customs or discal authorities of any and all relevant jurisdiction;
(b)
all Tax Losses; and
(c)
all costs, interest, penalties, fines, charges and expenses incidental or relating to any of the above;
TGI
means Treasure Global Inc (Delawarean Secretary of State File No.: 7908921), a company incorporated in the State of Delaware, United States of America and having its common stock publicly traded and listed on Nasdaq Stock Exchange
TGI Shares
means common stock of TGI;
Transaction
includes any transaction, act, event or omission of whatever nature;
Vendor’s Representative
has the meaning ascribed in Clause 4.3.3(e)
Warranties
any warranties and/or representations given by the Vendor(s) and Purchaser under this Agreement.
Any references, express or implied,
to statutes or statutory provisions shall be construed as references to those statutes or provisions as respectively amended or re-enacted
or as their application is modified from time to time by other provisions (whether before or after the date hereof) and shall include
any statutes or provisions of which they are re-enactments (whether with or without modification) and any orders, regulations, instruments
or other subordinate legislation under the relevant statute or statutory provision. References to sections of consolidating legislation
shall wherever necessary or appropriate in the context be construed as including references to the sections of the previous legislation
from which the consolidating legislation has been prepared.
1.2 Account
Any reference in this Agreement or
the Schedules to “accounts” shall include the directors' and auditors’ reports, relevant balance sheets and profit
and loss accounts and related notes together with all documents which are or would be required by law to be annexed to the accounts of
the company concerned and for the accounting period in question unless the reference is to unaudited accounts prepared by management in
which case, the directors’ and auditors’ reports shall be omitted.
9
1.3 Companies Act
The words “subsidiary”,
“related corporation” and “holding company” shall have the same meaning in this Agreement as their
respective definitions in the Companies Act.
1.4 Time
A reference to the time of day is
to Malaysia time. If any period of time is specified from a given day, or the day of a given act or event, it is to be calculated exclusive
of that day and if any period of time falls on a day which is not a Business Day, then that period shall expire on the next Business Day.
1.5 Miscellaneous
1.5.1 The headings in this Agreement are inserted for convenience only and shall be ignored in construing this
Agreement. When there is any doubt in the construction of this Agreement, no Party shall be prejudiced merely because it or its solicitors
had prepared this Agreement or proposed the relevant text in issue in this Agreement. Unless the context otherwise requires, words (including
words defined in this Agreement) denoting the singular number shall include the plural and vice versa. The words “written”
and “in writing” include any means of visible reproduction. References to the “Appendices”, “Clauses”,
“Recitals” and “Schedules” are to the relevant appendices, clauses of, recitals of and the schedules to this Agreement,
all of which form an integral part of this Agreement.
1.5.2 Notwithstanding anything to the contrary contained in this Agreement, the Vendors’ obligations and
liabilities in connection with the transactions contemplated under this Agreement are owed by the Vendors to the Purchaser on a joint
and several basis for the sale and purchase of the Sale Shares transactions.
2. Sale and Purchase of Sale Shares
2.1 Conditional upon the Proposed Capitalisation being effected in accordance with Clause 3.2(f), the share
capital of the Company shall comprise the Enlarged Total Share Capital, being Ringgit Malaysia One Hundred Eighty-Seven Thousand Three
Hundred and Forty-Eight only (RM187,348.00) consisting of one hundred and eighty-seven thousand three hundred and forty-eight (187,348)
units of ordinary shares issued at Ringgit Malaysia One only (RM1.00) each, of which each Vendor shall hold forty-six thousand eight hundred
and thirty seven (46,837) units of ordinary shares, representing twenty-five per centum (25%) of the Enlarged Total Share Capital.
2.2 Subject to the terms and conditions of this Agreement, the Purchaser agrees to purchase and each Vendor
agrees to sell thirty-seven thousand four hundred and seventy (37,470) ordinary shares (each an “Individual Share Capital Block”
or “ISCB”), free from all Encumbrances and together with all rights, benefits and entitlements attaching thereto as at Completion,
including all dividends and distributions declared, made or paid on or after Completion.
2.3 The Individual Share Capital Block’s collectively comprise one hundred and forty-nine thousand eight
hundred and eighty (149,880) units of ordinary shares in the Company, representing approximately eighty percent (80%) of the Enlarged
Total Share Capital (“the Sale Shares”). The sale and purchase of the Sale Shares shall be treated as one single composite
transaction and shall not be construed as separate independent sales of the respective ISCB, and the Purchaser shall not be obliged to
purchase any part of the Sale Shares unless all the ISCBs are sold to the Purchaser simultaneously.
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3. Due Diligence and Conditions Precedent
3.1 The Parties acknowledges that the Purchaser has, prior to the execution of this Agreement, conducted due
diligence exercise on the Company and the Vendor in respect of all matters (including but not limited to the Sale Shares, the Company’s
assets, liabilities, undertakings, financial, operational, management, accounting, financial and legal matters) (the “Due Diligence
Exercise”) and the Due Diligence Exercise was completed to satisfaction of the Purchaser.
3.2 The sale and purchase of the Sale Shares is conditional upon the satisfaction of the following conditions
(unless otherwise waived, where applicable) on or before Long Stop Date:
(a) the Purchaser being satisfied with the outcome of Due Diligence Exercise;
(b) the Escrow Agreement with respect to the Escrow Realisation Payment Scheme being entered into by the Vendors,
Purchaser and the Escrow Agent concurrently on the Agreement Date;
(c) the Purchase Consideration and valuation of the Sale Shares being supported and confirmed by an independent
valuation carried out by independent valuer appointed by the Purchaser;
(d) the Vendors having obtained all required approvals including all necessary corporate approvals (such as
board resolutions), regulatory, governmental and third-party approvals, consents, waivers or authorisations for disposal of Sale Shares
in accordance with the provisions of this Agreement;
(e) the Purchaser having obtained all required approvals including all necessary corporate approvals, regulatory,
governmental and third-party approvals, consents, waivers or authorisation for the acquisition of the Sale Shares in accordance with the
provisions of this Agreement;
(f) a written confirmation from the Vendors confirming no Material Adverse Change in CSSB, occurring as at
Agreement Date;
(g) a sum of Ringgit Malaysia Forty-Six Thousand Eight Hundred and Twelve only (RM46,812.00) owing by the
Company to each Vendor being capitalised and converted into forty-six thousand eight hundred and twelve (46,812) units of ordinary shares
in the Company at Ringgit Malaysia One only (RM1.00) per share for each Vendor, and all necessary resolutions and filings required under
the Companies Act to effect such capitalisation having been duly passed and lodged (“Proposed Capitalisation”); and
(h) all representations and warranties by the Parties in this Agreement being true and correct in all material
respects as at the Agreement Date.
11
(“Condition
Precedent”)
3.3 Each Party shall use its best endeavours to procure the fulfilment of the Condition Precedent set out
in Clause 3.2 which are within its respective control, on or before Long Stop Date. The Vendors shall be responsible for procuring the
fulfilment of the condition precedent stipulated in Clause 3.2(f) on or before Long Stop Date.
3.4 This Agreement shall become unconditional on the date on which the last of the Condition Precedent set
out in Clause 3.2 is fulfilled or, where applicable, waived in writing by the Party entitled to the benefit of such condition precedent
(“Unconditional Date”). For the avoidance of doubt, this Agreement shall be valid and binding on the Parties as from the Agreement
Date in the event if the documents as provided 3.2(a) to (h) are executed on the same date as the Agreement Date.
3.5 The Purchaser may, in its absolute direction and by written notice to the Vendors, waive any of the Condition
Precedent set out in Clause 3.2 which are for the benefit of the Purchaser. No waiver of Condition Precedent shall constitute a waiver
of any other Condition Precedent or of any right or remedy available to the Purchaser under this Agreement. If any of the Condition Precedent
set out in Clause 3.2 is not fulfilled or waived on or before the Long Stop Date, the Purchaser shall be entitled, by written notice to
the Vendors that:
(a) terminate this Agreement, whereupon the Vendors shall within seven (7) days from the date of termination
refund to the Purchaser the Deposit and all other monies paid by the Purchaser under this Agreement, free of interest, in full, without
prejudice to any other rights or remedies available to the Purchaser under this Agreement, at law or in equity; or
(b) extend the Long Stop Date for such further period as the Parties may agree in writing subject to the limit
set out in the definition of Long Stop Date.
3.6 The Parties hereby acknowledge that the Due Diligence Exercise has disclosed the Company’s current
state of Encumbrance and liabilities as of the Locked Box Date, and the Purchaser hereby confirms to have taken express notice thereof
(“Current Condition”). The Purchaser’s acknowledgement of Current Conditions shall not limit or prejudice the Vendor’s
Warranties or the Vendors’ obligations under this Agreement, and the Vendors shall remain jointly and severally liable for any breach
of Warranty or any undisclosed Encumbrance or liability existing as at or prior to the Locked Box Date.
4. Consideration
4.1 Purchase Consideration
4.1.1 The purchase price payable by the Purchaser to the Vendor for the purchase of the Sale Shares shall be
Ringgit Malaysia Two Million Five Hundred Thousand Only (RM2,500,000.00) (“Purchase Consideration”).
4.1.2 The Parties agree that the Purchase Consideration is for the purchase of the Sale Shares collectively
as one single composite transaction. The Purchase Consideration shall be paid in accordance with Clause 4.
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4.1.3 Each Vendor shall be entitled to twenty-five percent (25%) of the Purchase Consideration (“Purchase
Consideration Distribution Ratio”).
4.2 Deposit
4.2.1 The Purchaser shall upon execution of this Agreement, pay a deposit to the Vendors a sum of Ringgit Malaysia
Two Million Two Hundred Fifty Thousand Only (RM2,250,000.00) (“Deposit”) in accordance with the terms and conditions of Clause
4.2.2.
4.2.2 If the Purchaser elects to satisfy the Deposit by way of TGI Shares, the Parties agrees that Purchaser
shall pay the Deposit to the Vendors through the Escrow Realisation Payment Scheme with Escrow Realisation Period, the particulars whereof
are hereinbelow detailed:
(a) parties and the Escrow Agent shall enter into Escrow Agreement concurrently with this Agreement. The Escrow
Agreement shall particularise the mechanism and manner in which the issues arising in the Clause 4.2.2 are to be managed;
(b) the part of Deposit shall first be converted into United States Dollars at the middle rate for the conversion
of Ringgit Malaysia to United States Dollars as published by Bank Negara Malaysia on the last trading day immediately preceding the Agreement
Date (“Exchange Rate”). The number of Escrow Shares to be issued and allotted shall be determined by dividing the Deposit
(as converted into United States Dollars at the Exchange Rate) by the closing price per share of TGI common stock on the Nasdaq Stock
Exchange on the last trading day immediately preceding the Agreement Date (“Reference Price”), and any fractional share shall
be rounded down to the nearest whole share;
(c) parties agree that the Purchaser shall cause the Escrow Agent to be allotted and issued with such number
of common stocks in one TGI, as the Parties and the Escrow Agent may agree in writing (“Escrow Shares”);
(d) the Escrow Shares so issued and allotted shall be subject to restriction on trading for the Restricted
Period from the date of allotment and issuance thereto;
(e) the Vendors and Purchaser agree that the Escrow Shares shall be disposed of upon expiry of the Restricted
Period in accordance with Escrow Agreement, and the proceed of sale of the Escrow Shares (“Escrow Sale Proceed”) shall be
utilised towards payment of the Deposit;
(f) the Parties acknowledge and agree that the Escrow Shares are accepted by the Vendors solely as part of
the Escrow Realisation Payment Scheme. Upon the expiry of the Restricted Period, the Vendors and the Purchaser shall jointly instruct
the Escrow Agent to the dispose of the Escrow Shares in accordance with the terms and conditions of the Escrow Agreement; and
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(g) upon the issuance, allotment and disposal of the Escrow Shares, the risk of fluctuation in the market
value, tradability, liquidity or realisable value of the Escrow Shares shall be borne solely by the Vendors, and the Purchaser shall not
be liable for any diminution in the value of the Escrow Shares after the date of issuance and allotment.
4.3 Balance Purchase Consideration
4.3.1 The Parties agree that the balance purchase consideration being Ringgit Malaysia Two Hundred Fifty Thousand
Only (RM250,000.00) equivalent to ten per centum (10%) of the Purchase Consideration (“Balance Purchase Consideration”) shall
be paid by the Purchaser to the Vendor in accordance to the terms and conditions Clause 6.5
4.3.2 The Purchaser shall be authorised to release the Balance Purchase Consideration to the Vendors in accordance
with the Purchase Consideration Distribution Ratio, unless the Vendors jointly direct the Purchaser in writing to pay the entire Balance
Purchase Consideration to a single Vendor on behalf of all the Vendors and the Vendors hereby acknowledge receipt of the same.
5. Locked Box, Transactional Limit, and Financial Disclosure
5.1 The Vendors represent and warrant to the Purchaser, in respect of the CSSB, that the Locked Box Account:
(b) has been properly prepared with due care and attention and in good faith on a basis in accordance with
the Malaysia Financial Reporting Standards and applicable laws, and gives a true and fair view of the financial position of the Company
as at the Locked Box Date and of the results and cash flows of the financial year ended on the Locked Box Date.
(c) makes full provision for all actual liabilities and discloses all contingent liabilities as at the Locked
Box Date; and
(d) properly reflects all amounts owing by or to the directors and shareholder of the Company as at the Locked
Box Date.
5.2 No Leakage
The Vendors undertake
to the Purchaser that during the period from the Locked Box Date up to and including Completion, the Vendors shall not, and shall procure
that the Company shall not, do or permit any Leakage.
5.3 Transactional Limit
Subject to Permitted
Leakage, the Vendors shall use their best endeavours to ensure and cause the Company:
(a) not to incur any further Encumbrances and/or liabilities after the Locked Box Date;
(b) not to dispose of any assets after the Locked Box Date; and
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(c) to ensure that the financial position of the Company shall remain materially unchanged since the Locked
Box Date.
5.4 Financial Disclosure
The Vendors shall,
during the period from the Locked Box Date up to and including Completion:
(a) provide the Purchaser with access to the Company’s financial records, bank statements, management
accounts and such other financial information as the Purchaser may reasonably request;
(b) procure that the Company provides the Purchaser with monthly management accounts (including a profit and
loss statement, balance sheet and cash flow statement) within fourteen (14) days after the end of each calendar month; and
(c) promptly notify the Purchaser in writing of any Leakage or any event which is likely to constitute a Leakage
or a Material Adverse Change.
5.5 Locked Box Warranty
The Vendors represent
and warrant to the Purchaser that since the Locked Box Date and up to the Agreement Date, no Leakage has occurred other than Permitted
Leakage, and the Company has carried on its business in the ordinary and usual course in a manner substantially consistent with past practice.
This warranty shall be deemed repeated at Completion by reference to the facts and circumstance then existing.
5.6 Remedy
In the event of
any breach of Clause 5.2, the Vendors shall pay to the Purchaser on demand a sum equal to the amount of the Leakage, on a dollar-for-dollar
basis, within fourteen (14) days from the date of the Purchaser’s written notice to the Vendors of such breach. This remedy shall
be without prejudice to any other rights or remedies available to the Purchaser under this Agreement or at law.
6. Pre-Completion and Completion
6.1 Pre-Completion
6.1.1 Within five (5) Business Days after the Unconditional Date (or such other period as the Parties may agree
in writing), the Vendors shall deliver or cause to be delivered to the Purchaser the following:
(a) the original duly executed and undated share transfer form (executed by the Vendors) in respect of the
Sale Shares of the Company, in favour of the Purchaser (“Vendors Executed STFs”), accompanied by the relevant original share
certificates for the Sale Shares;
(b) the original signed and undated directors’ resolution of the Company approving the transfer of the
Sale Shares to the Purchaser, the registration of share transfer, subject only to it being duly stamped and the appointment of such persons
nominated by the Purchaser as Company’s directors (“Purchaser Nominee Director”);
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(c) the original signed and undated resignation letter of WLH, AWLM and OSZ as directors of the CSSB containing
a statement that there are no monies owed by the Company to him/her and that he/she has no claim against the Company for compensation
for loss of office, redundancy or unfair dismissal or otherwise howsoever (“Current Director Resignations”);
(d) the written confirmation signed and undated by the each of the Vendor confirming there are no monies (including
but not limited to any debt or outstanding) due and owing by the CSSB to the Vendors, their Affiliates or person connected to them (as
such expression is defined in the Companies Act) and that the Vendors has no claims against CSSB and if there are any such claim, the
Vendors shall irrevocably release, waive and disclaim all their rights to such claims;
(e) the original signed and undated board resolutions of the Company approving the revocation of all existing
authorities to bankers of the Company in respect of the operation of bank accounts and giving authority in favour of such persons as the
Purchaser may nominate to operate such accounts;
(f) such waivers of pre-emption rights, consents or approvals from existing shareholders or relevant parties
under the constitution of the Company; and
(g) any such documents as may be required for the stamping of the share transfer form (including copies of
the latest audited accounts of the Company, certified true copies of the certificate of incorporation, and all return of allotment of
shares) and such other documents, as may be required, to given the Purchaser good title to the Sale Shares and to enable the Purchaser
to become the registered holder thereof.
6.2 Conduct of Business
6.2.1 During the period from the Agreement Date up to and including Completion, the Vendors shall procure that
the Company:
(a) carries on its business in the ordinary and usual course in a manner substantially consistent with the
past practices;
(b) maintains its existing insurance policies in full force and effect;
(c) preserves its relationships with customers, suppliers and employees;
(d) does not make any changes to the terms and conditions of employment of any employee or officer, or hire
or terminate any employee or officer, without the prior written consent of the Purchaser;
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(e) shall not make any loans or grant any credit to any person (other than given in the ordinary course of
trading);
(f) shall not enter into any guarantee, indemnity or surety or provide any security in favour of any person;
(g) shall not permit any of its insurances to lapse or do anything which would make any policy of insurance
void or voidable;
(h) shall not make any borrow any money or give or allow to exist any charge or other security over its assets
or undertakings;
(i) shall not permit any liens to arise on any of its assets;
(j) provides the Purchaser and its representative with reasonable access to the Company’s premises,
assets, books and records during the normal business hours upon reasonable prior notice; and
(k) agree, conditionally or otherwise, to do any of the foregoing.
6.2.2 The Company will not vary or amend its constitution (if any);
6.2.3 The Company will not reduce or increase its share capital, or allot or issue any shares or any securities
or loan capital convertible into shares, or purchase, redeem, retire or acquire any such shares or securities, or agree to do so, or sell
or give any option right to purchase, mortgage, charge, pledge lien or other form of security or encumbrance over any such shares or securities;
6.2.4 The Company will not enter into any agreement or incur any commitment involving any capital expenditure
or expenditure other than in the ordinary course of business and consistent with past practices or as may be required in order to satisfy
an existing contractual requirement;
6.2.5 The Company will have sufficient cash and cash equivalent for its respective working capital requirements
so as to maintain the Company as a going concern;
6.2.6 The Company shall keep proper books of record and accounts, in which full and correct entries shall be
made of all its financial transactions and its assets and business in accordance with Malaysian Financial Reporting Standards issued by
the Malaysian Accounting Standards Board consistently applied;
6.2.7 The company will comply in all material respects with all Applicable Laws to which it is subject;
6.2.8 The Company shall pay and discharge before the same shall become delinquent;
(a) all taxes, assessments and governmental charges imposed upon it or upon its property; and
(b) all lawful claims which, if unpaid, might by law become a lien upon its property.
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6.3 Shareholder Agreement
The Parties shall negotiate in good
faith and execute a shareholder agreement to govern their rights and obligations as shareholders of the Company within sixty (60) days
after Completion, or such longer period as the Purchaser may agree in writing (“the Shareholder Agreement”) . Completion shall
not be conditional upon the execution of the Shareholder Agreement, provided that the Parties shall continue to negotiate and execute
the Shareholder Agreement. Each Vendor shall provide all reasonable assistance and shall take all actions reasonably required by the Purchaser
to negotiate, finalise and execute the Shareholder Agreement within the period specified herein.
6.4 Notification of Material Adverse Change
The Vendors shall promptly notify
the Purchaser in writing of any matter arising after the Agreement Date which, if it had arisen before the Agreement Date, would have
constituted a breach of any Warranty or would be likely to give rise to a Material Adverse Change.
6.5 Completion
6.5.1 Subject to the constitution of the Company and the Companies Act, the Completion Date shall be the date
on which:
(a) the Purchaser is registered as the proprietor of the Sale Shares in the register of members of the Company;
(b) to apply or cause the Company to apply cancellation the original share certificate(s) of the Sale Shares
issued in favour of the Vendors, if any;
(c) to apply or cause to apply to the Company to issue new share certificate(s) of the Sale Shares in favour
of the Purchaser;
(d) after or concurrent with the appointment of the Purchaser Nominee Directors as the directors, to deliver
to the Company the Current Directors Resignations to effectuate the resignation of the WLH, AWLM and OSZ as directors of the Company.
shall be known as “Completion
Date”;
whereby: on Completion Date, the sale
and purchase transaction of the Sale Shares is Completed. Completion as referred to in this Agreement shall be construed accordingly.
6.6 Completion Deliverable
6.6.1 On the Completion Date, the Vendors shall deliver or cause to be delivered to the Purchaser:
(a) a written confirmation from the Vendors that the Sale Shares are transferred free from all Encumbrances
and together with all rights attaching thereto as the Completion Date;
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(b) a director’s or authorized signatory’s certificate (if required by the Purchaser) confirming
that the Warranties remain true and correct as the Completion Date;
(c) all books, records, statutory registers, financial records, passwords, company seals and other documents
or property of the Company in the Vendors’ possession or control; and
(d) all other documents, consents and instruments as may be reasonably required by the Purchaser to give full
effect to the transfer of the Sale Shares under this Agreement.
6.7 Post-Completion
6.7.1 Upon Completion:
(a) the Purchaser shall be entitled to exercise majority control and management of the Company, including
the right to appoint directors, officers and authorized signatories in accordance with the Shareholders’ Agreement;
(b) the composition and number of directors of the Company following Completion shall be determined in accordance
with the Shareholders’ Agreement; and
(c) the Vendors shall provide such assistance as may be reasonably required by the Purchaser to facilitate
an orderly transition of the management and operations of the Company following Completion.
6.8 Effect of Completion
The Warranties and all other provisions
of this Agreement insofar as the same shall not have been performed at Completion shall not be extinguished or affected by Completion,
or by any other event or matter, except by a specific written waiver or release by the Purchaser. The Vendors’ Warranties, covenants
and indemnities are deemed given by the Vendors jointly and severally in favour of the Purchaser.
7. Representation, Warranties and Undertakings
7.1 Vendor’s Warranties
7.1.1 The Vendor hereby warrants to and undertakes with the Purchaser:
(a) that the statement contained in the Recitals are true and accurate in all respects;
(b) upon completion of the Proposed Capitalisation, each Vendor will be the legal and beneficial owner of
thirty-seven thousand four hundred and seventy (37,470) ordinary shares in the Company comprising the Vendor’s ISCB;
(c) that the Sale Shares are or will upon completion of the Proposed Capitalisation be free from all Encumbrances
and, save for the Proposed Capitalisation, no person has any right (whether exercisable now or in the future, and whether contingent or
not) to call for the allotment, issue, sale or transfer of any share or loan capital of the Company under any option or other agreement
(including conversion rights and rights of pre-emption);
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(d) each Vendor has the full legal right, power and authority to enter into this Agreement and all necessary
action has been taken to authorize the execution of this Agreement and the transactions contemplated herein;
(e) the execution of this Agreement and the performance of the Vendors’ obligations hereunder constitute
valid, legal and binding obligations enforceable against each Vendor in accordance with its terms;
(f) the execution of this Agreement and the sale of the Sale Shares will not result in a breach of any of
the terms or provisions of, constitute a default under, or conflict with any agreement, indenture, constitutional document or other instrument
or obligation to which the Vendors or the Company are a party or by which they are bound;
(g) the Company has been duly incorporated and is validly existing under the laws of Malaysia, has not been
nor is in the process of being wound up or liquidated, and has full corporate power and authority to carry on its business as currently
conducted;
(h) the Company has complied with its constitution and the Companies Act in all material respects;
(i) no Vendor is Insolvent and no step as have been taken or are pending for the bankruptcy, winding up, liquidation
or appointment of a receiver, manager or similar officer over any Vendor’s assets. For the purpose of this Agreement, “Insolvent”
means, in the case of an individual, having committed an act of bankruptcy as defined under the Insolvency Act 1967 or being the subject
of any action for adjudication of bankruptcy, or being insolvent or bankrupt;
(j) no litigation, arbitration, administrative or other proceedings are current, pending or threatened against
the Company or any Vendor which would have a material adverse effect on the Company, the Sale Shares or the ability of any Vendor to perform
its obligations under this Agreement;
(k) all information provided by the Vendors to the Purchaser in connection with Due Diligence Exercise was
true, complete and accurate in all material respects as at the date it was provided and is not misleading; and
(l) all outstanding amounts owing by the Company to the Vendors and/or the directors of the Company as at
the Locked Box Date have been fully capitalized and converted into share capital of the Company in accordance with Clause 3.2(f) and as
at the Agreement Date, save for the amount set out in the Locked Box Account, the Company has no outstanding loans, advances or other
amounts payable to the Vendors and/or the directors of the Company.
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7.2 Purchaser’s Warranties
7.2.1 The Purchaser warrants to and undertakes with the Vendor that:
(a) it has full legal rights and power to enter into this Agreement and all necessary actions have been taken
to authorise the execution of this Agreement;
(b) the execution of this Agreement by the Purchaser and the performance of its obligations constitute valid,
legal and binding obligations enforceable against the Purchaser or his nominee (as the case may be) in accordance with its terms; and
(c) the Purchaser is not insolvent and no steps have been taken or are pending for its winding up, liquidation
or the appointment of a receiver, manager or similar officer over its assets.
7.3 Separate and independent
Save as expressly
otherwise provided, the Vendors’ Warranties shall be separate and independent and shall not be limited by reference to any other
Warranty or any other provision of this Agreement.
7.4 Parties Induced by and Relied on Warranties
Each Party acknowledges
that the other Party is entering into this Agreement in reliance on (inter alia) the Vendors’ Warranties or the Purchaser’s
Warranties (as applicable) and was induced by the same to enter into the Agreement.
7.5 Survival
Unless otherwise
terminated, rescinded or prior determined, the Warranties shall remain enforceable from the Agreement Date until the date failing twenty-four
(24) months after Completion. Termination, rescission or prior determination of this Agreement shall not affect the rights and remedies
of each Party for any antecedent breach.
8. Indemnity
8.1 In consideration of the Purchaser entering into this Agreement on the basis of the representations, warranties,
undertakings and agreements of the Vendors in this Agreement and to the intent that the same will be fulfilled down to, and will be true
and correct in all material respects and not misleading at, Completion as if they had been entered into afresh at Completion with reference
to the facts and circumstances existing on such day, the Vendors hereby undertake to the Purchaser that they will, indemnify and keep
the Purchaser harmless from and against all Losses which may be made or brought against the Purchaser or the Company or which the Purchaser
or the Company may suffer or incur as a result of or in relation to any misrepresentation by the Vendors or any breach of the Vendors’
Warranties on their part or any failure by the Vendors to perform their obligations under the undertakings or agreements contained in
this Agreement.
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8.2 Tax Indemnity
8.2.1 In consideration of the Purchaser entering into this Agreement on the basis of the representations, warranties,
undertakings and agreements of the Vendors in this Agreement, the Vendors hereby agrees with and undertakes to the Purchaser and the Company
to indemnify and keep indemnified the Purchaser and the Company against any depletion in or reduction in the value of its or their assets
or increase in its or their liabilities (whether as a result, or in consequence of, any claim for Taxation which has been made or may
hereafter be made):
(a) in respect of or arising from any transaction effected or deemed to have been effected on or before Completion;
or
(b) by reference to any income, profits or gains earned, accrued or received on or before Completion, regardless
of when the relevant claim in respect of any such liability was, is or will be commenced.
8.2.2 The indemnity in Clause 8.2.1 shall include without limitation, all penalties, charges, interest, costs
and expenses including without limitation, external advisors’ and/or consultants’ fees incurred by the Purchaser and the Company
in connection with any claim for Taxation or liability as is herein mentioned.
8.2.3 For the purpose of this Clause 8.2:
(a) references to any transaction effected on or before Completion include the combined result of two or more
transactions the first of which shall have taken place or the commencement of which shall have occurred on or before Completion;
(b) refences to income, profits or gains earned, accrued or received include income, profits or gains deemed
to have been or treated as earned, accrued or received for Taxation purposes wholly or partly relate to any period or part-period ending
on or before the Completion Date; and
(c) where any person (including the Purchaser or the Company) suffers loss of or reduction in the amount of
any relied, allowance, deduction, rebate, set-off, or credit or has a right to the repayment of Taxation nullified or cancelled in whole
or in part and such relied, allowance, deduction, rebate, set-off, credit or right to repayment related to a transaction which was effected
on or before Completion or was granted by refence to any income, profits or gains earned, accrued or received on or before Completion,
then such person shall be treated as having incurred a corresponding depletion in or reduction in the value of his assets as a result
of a claim for Taxation made in circumstances falling within Clause 8.2.1
9. Non-Competition
9.1 In this Clause:
(a) "Business" means the retail sale of tobacco products, wholesale of tobacco, cigar, cigarettes,
and the retail sale of tea, coffee, soft drinks, mineral water and other beverages, and any other business activities conducted by the
Company on and before the Completion Date;
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(b) "Prohibited Period" means the period commencing on the calendar day immediately following the
Completion Date and ending on the fifth (5th) anniversary of the Completion Date; and
(c) "Prohibited Person" means any associate, affiliate or family member of a Vendor.
9.2 Each of the Vendors agrees and undertakes to the Purchaser that he or she shall not, and shall procure
that no Prohibited Person shall, during the Prohibited Period:
(a) carry on, be engaged in, be concerned with or be interested in (whether directly or indirectly and whether
as principal, agent, partner, director, shareholder, employee, consultant or otherwise) any business which is the same as, similar to,
or competitive with the Business;
(b) solicit, canvass, approach or entice away from the Company any person who is or was a customer, client
or supplier of the Company;
(c) solicit, entice or endeavour to entice away from the Company any person who is or was an employee, officer,
consultant or agent of the Company; or
(d) use any trade name, trademark, business name or style which is identical or similar to, or likely to be
confused with, any trade name, trademark, business name or style used by the Company (including "CIGAR SECRET").
9.3 Each Vendor acknowledges that the restrictions in this Clause 9 are reasonable and necessary for the protection
of the Purchaser's legitimate interests in the Company and the goodwill acquired as part of the Sale Shares, and that the duration and
scope of such restrictions are fair and proportionate.
9.4 If any restriction in this Clause 9 is held to be void or unenforceable but would be valid and enforceable
if some part thereof were deleted or the scope or duration were reduced, such restriction shall apply with such modification as may be
necessary to make it valid and enforceable.
10. Event of Default and Termination
10.1 Event of Default
10.1.1 The following shall be an event of default by the Vendors:
(a) if there is a Material Adverse Change of any of the Company occurring on or before the Completion Date;
(b) if there is a material breach of any of the Vendors’ Warranties on or before the Completion which
breach cannot be remedied or there is a material breach of any of the Vendors’ Warranties and if such material breach is capable
of being remedied, the Purchaser has given a written notice to the Vendors to remedy the same within fourteen (14) Business Days from
the date of the notice (“Remedy Period”) and the Vendors has failed to remedy the said breach to the Purchaser’s
satisfaction during the Remedy Period; or
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(c) if there are a material breach of any of the Vendors’ obligations, warranties, undertakings, covenants
under the Agreement which breach cannot be remedied or there is a material breach of any of the Vendors’ Warranties and if such
material breach is capable of being remedied, the Purchaser has given a written notice to the Vendors to remedy the same within Remedy
Period and the Vendors has failed to remedy the said breach to the Purchaser’s satisfaction during the Remedy Period; or
(d) if the other Party, its personnel, employees, servants, officers and/or agents is found or known or suspected
to be involved in any fraudulent (whether constructive, actual and/or implied) or any unlawful activity related to this Agreement; or
(e) an insolvency/bankruptcy event of any of the Vendors (which includes any of the Vendors entering into
any compromise or arrangement with a creditor or having any bankruptcy petition presented, or any enforcement or litigation proceedings
taken, against him/her which is not settled or resolved within 30 days); or
(f) if the other Party allow any judgment against it to remain unsatisfied for more than seven (7) calendar
days thereof or has any distress or execution or other process of a court of competent jurisdiction levied upon or issued against any
of its property and such distress execution or other process as the case may be is not satisfied by it within seven (7) calendar days
from the date thereof; or
(g) if the other Party enters into any composition or arrangement with or for the benefit of its creditors
(except arrangement with the Party); or
(h) any Condition Precedent not being satisfied or not waived by the Purchaser on or before the Long Stop
Date; or
(i) if this Agreement is held to be illegal or invalid in its entirety under present or future laws or regulations.
10.1.2 The following shall be an event of defaults by the Purchaser: -
(a) if there is a material breach of any of the Purchaser’s Warranties on or before the Completion which
breach cannot be remedied or there is a material breach of any of the Purchaser’s Warranties and if such material breach is capable
of being remedied, the Vendors has given a written notice to the Purchaser to remedy the same within Remedy Period and the Purchaser has
failed to remedy the said breach to the Vendors’ satisfaction during the Remedy Period;
(b) if there is a material breach of any of the Purchaser’s obligations, warranties, undertakings, covenants
under the Agreement which breach cannot be remedied or there is a material breach of any of the Purchaser’s Warranties and if such
material breach is capable of being remedied, the Vendors has given a written notice to the Purchaser to remedy the same within Remedy
Period and the Purchaser has failed to remedy the said breach to the Vendors’ satisfaction during the Remedy Period; or
(c) the Purchaser become unable to pay its debt when due (as defined in Companies Act) or have petition and/or
resolutions of winding up presented or passed for winding-up of the Purchaser.
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(Collectively referred to as “Events
of Default”)
10.2 Remedies in General
10.2.1 For the purpose of this Clause 10, “Defaulting Party” means the Purchaser or the Vendors (collectively
and not any Vendor singularly) who commits an Event of Default and “Non-Defaulting Party” shall be construed accordingly.
10.2.2 Upon the occurrence of any Event of Default, the Non-Defaulting Party may at its election either:
(a) terminate this Agreement by notice in writing to the Defaulting Party in accordance with Clause 10.3;
or
(b) seek specific performance of this Agreement;
in each case in accordance
with the terms of this Agreement, applicable law and/or equity. The election of one remedy shall not preclude the Non-Defaulting Party
from pursuing any other right or remedy available under this Agreement, at law or in equity.
10.3 Termination
10.3.1 Termination by Purchaser
Upon the occurrence
of any Event of Default under the Clause 10.1.1, the Purchaser shall be entitled to terminate this Agreement by serving a written notice
of termination on the Vendors.
10.3.2 Termination by the Vendors
(a) Upon the occurrence of any event of default under the Clause 10.1.2, the Vendors shall be entitled to
terminate this Agreement by service a written notice of termination on the Purchaser.
(b) This Agreement shall terminate on the date specified in the notice of termination, or if no date is specified,
on the date of receipt of such notice by the Defaulting Party.
10.4 Consequences of Termination
10.4.1 If this Agreement is terminated by the Purchaser pursuant to Clause 10.3.1:
(a) the Vendors shall within seven (7) days from the date of termination refund to the Purchaser the Deposit
and all other monies paid by the Purchaser under this Agreement, free of interest, in full;
25
(b) where any part of the Balance Purchase Consideration has been satisfied by way of issuance and allotment
of TGI Shares to the Vendors and/or the Vendors' Representative, the Vendors or Vendors’ Representative shall within seven (7) days
from the date of termination return and transfer to the Purchaser, or to such person as the Purchaser may nominate, all such TGI Shares,
free from all Encumbrance. The Vendors shall procure all documents, instructions and actions required to effect such return and transfer;
(c) the Vendors shall, within seven (7) days from the date of termination, pay to the Purchaser a sum equivalent
to the Deposit as liquidated ascertained damages for the by the Vendors’ breach of this Agreement. The Vendors’ liability
under this provision shall be joint and several, and the Purchase Consideration Distribution Ratio shall not limit the Purchaser’s
right to recover the full amount from any one or more of the Vendors; and
(d) the above shall be without prejudice to any other rights or remedies available to the Purchaser under
this Agreement, at law or in equity.
10.4.2 If this Agreement is terminated by the Vendors pursuant to Clause 10.3.2:
(a) the Deposit paid by the Purchaser to the Vendors shall be forfeited by and retained by the Vendors as
liquidated ascertained damages, with each Vendor being entitled to retain such portion of the Deposit in accordance with the Purchase
Consideration Distribution Ratio;
(b) the Vendors shall return to the Purchaser all documents delivered by the Purchaser to the Vendors or the
Company in connection with this Agreement within seven (7) days from the date of termination; and
(c) the above shall be without prejudice to any other rights or remedies available to the Vendors under this
Agreement, at law or in equity.
10.4.3 In the event that the Stamped STF is unable to be registered in favour of the Purchaser within the period
stipulated in Clause 6.6 without any fault of the Purchaser, the Purchaser shall be entitled to terminate this Agreement forthwith and
the consequences set out in Clause 10.4.1 shall apply
11. Confidentiality
11.1 Confidential Information to Be Kept Confidential
Each Party shall keep confidential
and shall procure that its respective employees, directors, officers, agents and nominees keep confidential all Confidential Information,
and shall not, and shall procure that its respective employees, directors, officers, agents and nominees shall not, use and/or disclose
such Confidential Information except as permitted or required by law, or with the written consent of the other Party, or in accordance
with the order of a court of competent jurisdiction, or until the recipient of such Confidential Information can reasonably demonstrate:
26
(a) that it is or part of it is, in the public domain (other than as a result of disclosure in violation of
its obligation pursuant to this Clause 11), whereupon, to the extent that it is public, this obligation shall cease; or
(b) that disclosure of Confidential Information is or becomes required by operation of Applicable Law including
without limitation, pursuant to court proceedings, court order, applicable stock exchange or governmental regulation and/or otherwise
by legal process (but only to the extent so required);
(c) that Confidential Information is disclosed pursuant to the rules of any applicable stock exchange;
(d) disclosure is required by a securities exchange or regulatory or governmental body to which that Party
is subject or submits wherever situated, whether or not the requirement for information has the force of law; or
(e) disclosure is necessary to be made to a Party’s financial advisers, legal advisers, technical advisers,
financiers and potential financiers, shareholders and ultimate shareholders in connection with the acquisition or disposal of the Sale
Shares;
and in all such cases, this obligation
shall cease but only to the extent required under the respective circumstances.
11.2 Parties to Minimise Risk of Disclosure
The Parties shall take all reasonable
steps to minimise the risk of disclosure of Confidential Information, by ensuring that only those of their directors, employees, servants
and agents whose duties will require them to possess any of such information shall have access thereto, and that they shall be instructed
to treat the same as confidential.
11.3 Parties Not to Use Confidential Information
Each of the Parties will not use,
either while it is a Party to this Agreement or thereafter, in a manner prejudicial or detrimental to the interests of any Party, any
Confidential Information of the other Party.
11.4 Obligations in This Clause to Endure
The obligations contained in this
Clause shall continue to apply, even after the termination of this Agreement, without limit in point of time except and until any Confidential
Information falls within the provisions of sub-clauses 11.1(a), (b), (c), (d) or (e).
27
12. Notices
12.1 Service of Notice
Except as stipulated
in this Agreement, a notice, letter or other communication required or permitted (the “Communication”), under this
Agreement or by any written law related, ancillary or incidental to this Agreement, shall be served to the other Party in a manner as
follows:-
(a) by leaving a copy of the Communication at that Party’s current address of service; or
(b) by mailing the original copy of the Communication vide acknowledge receipt registered post addressed to
that Party at the Party’s current address for service.
12.2 Time of Service
Unless specified
otherwise in this Agreement, a Communication is deemed served:
(a) If served personally or left at the Party’s current postal address for service, upon service; or
(b) if posted by acknowledge receipt registered post within Malaysia to a Malaysian address, five (5) Business
Days after posting, and in any other case, ten (10) Business Days after posting;
if a Party receive Communication by
method (a) after 1600 hours local time of the place of receipt or on a day which is not a Business Day, the service is deemed completed
at 0900 hours local time on the next Business Day.
13. General
13.1 Governing Law and Jurisdiction
This Agreement is
governed by and is to be construed in accordance with the laws of Malaysia. Each Party irrevocably and unconditionally submits to the
exclusive jurisdiction of the courts of Malaysia and waives any right to object to proceedings being brought in those courts.
13.2 Legal Costs and Stamp Duty
13.2.1 Unless otherwise stated herein, Parties shall bear their own expenses respectively in relation to the
negotiation, preparation and execution of this Agreement and other documents related, ancillary and incidental to this Agreement. Any
stamp duty related to Agreement and other documents related, ancillary and incidental to this Agreement, including but not limited to
any stamping of the share transfer form making it to become stamped share transfer form shall be borne by the Purchaser.
13.2.2 In the event of any arbitration or litigation, including breach, enforcement or interpretation, arising
out of this Agreement, the prevailing Party of such litigation shall be entitled to recover reasonable legal fees, costs, and expenses,
including pre-litigation, litigation and appellate legal fees and costs (on a solicitors-client basis).
13.2.3 Each Party shall bear its own solicitors’ cost in negotiating, finalising and executing this Agreement.
28
13.3 Waiver and Exercise of Rights
13.3.1 A single or partial exercise or waiver of a right relating to this Agreement does not prevent any other
exercise of that right or the exercise of any other right.
13.3.2 No Party will be liable for any loss or expenses incurred by another Party caused or contributed to by
waiver, attempted exercise, failure to exercise or delay in the exercise of a right.
13.4 Assignment and Successor Bound
13.4.1 Neither party may assign, transfer or otherwise dispose of any of its right or obligations under the Agreement,
in whole or in part, without the prior written consent of the other party.
13.4.2 Subject to the foregoing, this Agreement shall be binding upon and enure for the benefit of the Parties
and their respective successors-in-title, permitted assigns and, where applicable personal representatives.
13.5 Written Consent
Where any written consent is required
from any of the Party, such written consent shall not be unreasonably withheld.
13.6 Illegality and Severability of Provisions
13.6.1 The illegality, invalidity or unenforceability of any provision of this Agreement under the law of any
jurisdiction will not affect its legality, validity or enforceability under the law of any other jurisdiction, nor the legality, validity
or enforceability of any other provision.
13.6.2 If a provision in this Agreement is held to be illegal, invalid, void, voidable or unenforceable, that
provision must be read on its own to the extent necessary to ensure that it is not illegal, invalid, void, voidable or unenforceable.
13.6.3 If it is not possible to read down the provision as required in this clause, that provision is severable
without affecting the validity or enforceability of the remaining part of that provision or the other provisions in this Agreement.
13.7 Counterparts
This Agreement may
be executed in any number of counterparts all of which taken together constitute one instrument.
13.8 Entire Agreement
Unless otherwise
expressly stated in any duly stamped addendum or instrument for the purpose of novation, amendment and/ or supplementary to this Agreement,
this Agreement constitutes the entire agreement between the Parties hereto with respect to the matters dealt with therein and supersedes
any previous agreement or understanding between the Parties hereto in relation to such matters.
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been intentionally left blank)
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schedule
1
locked
box account
[to be insert]
30
IN WITHNESS WHEREOF the
hands of the parties or their duly authorised representatives the day and year first above written.
Signed by the Vendors
Signed by
Wong Lai Hoong
(NRIC No. 911112-10-5964)
/s/ Wong Lai Hoong
Signed by
Chan Chee Kae
(NRIC No. 921028-14-5081)
/s/ Chan Chee Kae
Signed by
Angie Wong Lai Mun
(NRIC No. 901127-10-5124)
/s/ Angie Wong Lai Mun
31
Signed by
Ong Si Zhong
(NRIC No. 920406-14-6213)
in the presence of
/s/ Ong Si Zhong
Signed by the Purchaser
Signed for and on behalf of
the Purchaser
Tadaa Capital Sdn Bhd
[Company Registration No:
202501039949 (1641358-K)]
in the presence of
/s/ Vincent Tan
/s/ Teo Chong Chan
Witness
Director
Name: Vincent Tan
Name: Teo Chong Chan
NRIC No. [***]
NRIC No. [***]
32
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