PICORP PIC公司 7201 PROGRESSIVE IMPACT CORPORATION
March 25, 2015 : 2:07 PM MYT
KUALA LUMPUR (March 25): Progressive Impact Corporation Bhd ( Financial Dashboard) has bagged an extension of concession agreement for an interim period of one year worth RM22 million from Ministry of Natural Resources and Environment (NRE).
In a filing with the local bourse today, the company said its wholly owned subsidiary Alam Sekitar Malaysia Sdn Bhd had yesterday received a letter from the ministry to notify them about the extension.
Progressive Impact (fundamental: 2.4; valuation: 1.2) said the extension is for the interim period of one year commencing on April 14 this year to April 13, 2016.
The contract was for the provision of environmental monitoring and data management activities.
Progressive Impact is principally engaged in the provision of environmental services.
According to the group, the terms and conditions of the interim concession shall be based on the Interim Agreement to be entered into with the NRE in April 2015 and other existing agreements.
"The salient terms of the Interim Agreement will be announced upon execution of the Interim Agreement," it added.
"The Interim Concession is not expected to have any material impact on the earnings and net assets of the group for the financial year ending Dec 31, 2015," the group said.
Progressive Impact also did not foresee any exceptional risk other than execution risk associated with the Interim Concession.
To recap, the group had on April 14, 1995 entered into a Concession Agreement relating to environmental monitoring and data management activities of the Department of Environment with the government of Malaysia.
The agreement is to set forth the respective rights of the parties in order to implement the privatisation of the environmental monitoring and data management activities in Malaysia.
Under the contract, Progressive Impact was granted the exclusive right to operate the manual ambient monitoring programme for a term of 20 years from April 14, 1995.
The contract may be extended for an additional 5-year period at the option of the government subject to the terms and conditions to be agreed upon by the parties.
As at 12.30pm, the stock was traded at 20.5 sen, up half a sen or 2.5%, giving it a market capitalisation of RM131.6 million.
