- The group said its wholly-owned indirect unit, Annum Industries Sdn Bhd, has entered into 10-year agreements to use land leased by two parts of the Terengganu government.
KUALA LUMPUR (October 6): Plywood products maker Annum Bhd (formerly known as Cymao Holdings Bhd) has secured land in Setiu, Terengganu to facilitate the group’s diversification into smart farming.
The group said its wholly-owned indirect unit, Annum Industries Sdn Bhd, has entered into 10-year agreements to use land leased by two parts of the Terengganu government.
The first party, an individual named Shahruddin Abdullah, had leased 9.39 ha of land in the permanent food production park from the state government for three years, renewable for three terms of three years each.
The park is located on land with a total area of 87.36 ha, reserved for agriculture in Terengganu.
The second party, Perladangan Warisan Timur Sdn Bhd (PWTSB), had leased 4.9 ha of land in the same park under the same scheme. PWTSB is mainly involved in mining, quarrying, logging, agriculture and plantation.
The two plots of land leased by Shahruddin and PWTSB are vacant with stumps, bushes and shrubs that needed to be cleared to accommodate agricultural activities.
Under the agreements, Annum is granted the right to use the land for construction and construction of greenhouses for a smart farming business at an annual fee of RM1,408 to Shahruddin and RM735 to PWTSB.
Annum is obligated to share up to RM1 million of annual profits generated from smart farming activity.
However, in the event of losses, Annum is released from its obligation to pay profit sharing, and accumulated losses can be used to compensate with profit sharing in subsequent years.
Annum said his smart farming company adopts a modern farming method that uses various technologies to collect, process and analyze data on soil acidity, moisture and nutrient levels as well as the environment. agricultural.
The group said it would fund the venture through its ongoing rights issue exercise to raise between RM8 million and RM39 million.
Shares in Annum closed half the sen or 1.7% lower at 28 sen on Thursday, giving the group a market capitalization of RM27.3 million.