Item 3. Legal Proceedings
ITEM
3.
LEGAL
PROCEEDINGS
On October 8, 2021, a filing (the “Filing”) was made with the
Kuala Lumpur High Court by a reseller (the “Reseller”) of the Company’s INCU ionic nano copper solution (the “Solution”)
and the Reseller’s related party (together with the Reseller, the “Plaintiffs”). The Reseller was authorized by WKL
Eco Earth’s sole distributor of the Solution (the “WKL Distributor”) to resell the Solution together with a diffuser
with a capacity of not more than 1000ml through a tripartite agreement (the “Tripartite Agreement”) entered into between (a)
the Reseller, (b) the WKL Distributor and (c) a solution packaging company (the “Packaging Company”). WKL Eco Earth was not
a party to the Tripartite Agreement and did not directly authorize or engage the Reseller in the resale of the Solution. In the Filing,
the Plaintiffs claimed against (i) WKL Eco Earth; (ii) Dr. Low; (iii) Chan Kok Wei, (iv) the Packaging Company and (v) two directors of
the Packaging Company for loss and damages arising from an alleged breach of contract, defamation and tort of inducement. The Plaintiffs
also alleged that pursuant to the Tripartite Agreement, WKL Eco Earth was prohibited from selling the Solution to any party other than
the WKL Distributor, and that the Tripartite Agreement allowed for the resale of the Solution by the Plaintiffs without limitation, the
Plaintiffs were not confined in their resale of the Solution to a product consisting of a diffuser with a capacity of not more than 1000ml.
The Company believes the claims are without merit and will defend itself against the claims.
Besides the above, we are not a party to any legal proceedings that in
the opinion of our management would have a material adverse effect on our business. However, from time to time we may become involved
in legal proceedings or may be subject to claims arising in the ordinary course of our business. Although the results of litigation and
claims cannot be predicted with certainty, we believe that the final outcome of ordinary course matters will not have a material adverse
effect on our business, operating results, financial condition or cash flows.
The Company believes the claims are without merit and will defend itself
against the claims.
ITEM
4.
MINE
SAFETY DISCLOSURES
No
report required.
28 | Page
PART
II
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.