KUALA LUMPUR (April 20): M3 Technologies (Asia) Bhd’s memorandum of collaboration with AT Systematization Bhd to provide digital signage hardware and software enhancements for large scale Covid-19 disinfection chambers has fallen through.

In a bourse filing, M3 Tech said the decision was mutually agreed upon by both groups as they had not entered into a more definitive agreement.

“The termination will not have any material effect on the earnings or net assets of M3 Tech for the financial period ended March 31, 2021," it added.

Under the collaboration deal signed one year ago, M3 Tech was in charge of evaluating and posing digital signage solutions for the chambers, which would have the ability to measure body temperatures, facial recognition, movement tracking, and automated fault detection.

The group was to also undertake technical consultations and be involved in the planning, design, research and development of the software design and equipment parts involved in the disinfection chambers.

At the time, AT Systematization was in the process of manufacturing the chambers, which are designed to be installed at the entrances of any buildings. The chambers would deploy sanitising spray on anyone going through them as well as measure body temperature.

In announcing the deal, M3 Tech had noted that following the movement control order (MCO), people would become more hygiene conscious, therefore resulting in a huge surge in demand for such chambers.

“This chamber will assist to ensure that anyone who enters the buildings/premises is not suffering from a potentially infectious illness. It can easily identify any person displaying signs of a fever with a body temperature in excess of 37 degrees Celsius. The collaboration will expedite the production process by sharing the expertise of the parties in the effort to prepare for post-MCO demand for disinfection chamber,” M3 Tech said last year.

The termination of the proposed deal came a day after M3 Tech announced that its shareholders had rejected the mobile solutions provider’s proposed private placement at an extraordinary general meeting.

Seven shareholders controlling 146.1 million shares had rejected the resolution calling for the placement, versus four shareholders controlling 76.38 million shares who voted in favour of the resolution

In terms of percentage of voted shares, 65.67% voted against the resolution, while 34.33% was in favour.

The group had completed another private placement on Jan 18, placing out 128.54 million shares or 20% of its share base at the time.

XOX Bhd is M3 Tech’s largest shareholder with a 9.39% stake, followed by Lim Seng Boon with a 7.4% stake, and Voon Sze Lin with a 6.16% stake.

Shares in M3 Tech closed 0.5 sen or 10% higher at 5.5 sen, valuing the group at RM42.56 million. The counter saw 9.08 million shares traded.

Meanwhile, AT Systematization shares closed 0.5 sen or 5.26% lower at nine sen, for a market value of RM380.62 million. The stock's trading volume was 22 million shares.