The Board of Directors of Solution Group Berhad (SGB) announced that SGB had on 7 January 2022, incorporated a 70% owned subsidiary namely SOLUTION MEDICINALS SDN BHD (SOLMED) as a private company limited by shares under the Companies Act 2016 (Incorporation). The other 30% of the ordinary shares are held by Bioarc Asia Sdn. Bhd.

(Bioarc). SOLMED's proposed business activity is to carry on the product registration, manufacturing and commercialization of active plant compounds and products for medical purpose. Bioarc is a wholly-owned subsidiary of Bioarc Limited.

Bioarc Limited is a medicinal cannabis company focused on cultivar development for improved agronomics and therapeutic qualities. They have expertise in Plant Breeding, Horticulture, Pharmacy, Healthcare, Production, Distribution and Education. The Incorporation will not have any material impact on the earnings per share, net assets per share, gearing, share capital and substantial shareholders' shareholding of the Company for the financial year ending 31 December 2022.

None of the Directors, major shareholders and/or persons connected with them has any interest, direct or indirect, in the Incorporation.