Borneo Aqua Harvest Bhd : JOINT VENTURE AGREEMENT BETWEEN PLENTIFUL HARVEST SDN. BHD. AND CITY HARVEST AQUACULTURE SDN. BHD. FOR THE UTILISATION OF LAND OWNED BY PLENTIFUL HARVEST SDN. BHD.

Company Name	:	BORNEO AQUA HARVEST BERHAD(ACE Market)
Stock Name	:	BAHVEST
Date Announced	:	10/01/2014

Type	:	Reply to query
Reply to Bursa Malaysia's Query Letter - Reference ID	:	YL-140109-43767
Subject	:	JOINT VENTURE AGREEMENT BETWEEN PLENTIFUL HARVEST SDN. BHD. AND CITY HARVEST AQUACULTURE SDN. BHD. FOR THE UTILISATION OF LAND OWNED BY PLENTIFUL HARVEST SDN. BHD.
Description	:	JOINT VENTURE AGREEMENT BETWEEN PLENTIFUL HARVEST SDN. BHD. AND CITY HARVEST AQUACULTURE SDN. BHD. FOR THE UTILISATION OF LAND OWNED BY PLENTIFUL HARVEST SDN. BHD.
Query Letter content	:	We refer to your announcement dated 6 Jan 2014 in respect of the above captioned matter. In this connection, kindly furnish Bursa Securities with the following additional information for public release:- 1. The size of the land situated at Pulau Palak. 2. The utulisation of the Land prior to the Joint Venture. 3. The total capital and investment outlay to be borne by Borneo Aqua Harvest Berhad for the Joint Venture, or a negative statement. 4. The sources of funds for financing the capital and investment outlay and its breakdown. 5. The risks and prospects of the Joint Venture. 6. The duration of the Joint Venture and circumstances under which it may be terminated. 7. The impact on the Land upon termination of the Joint Veture. 8. The highest percentage ratio applicable to the Joint Venture pursuant to paragraph 10.02(g) of the ACE Market Listing Requirements. 9. The effect of the Joint Venture on the ownership of the Land. Kindly furnish Bursa Securities with your reply within one (1) market day from the date hereof. Yours faithfully TAN YEW ENG Vice President, Issuers Listing Division Regulation TYE/yls c.c .Head, Market Surveillance Department, Securities Commission (via fax)
Announcement Details/Table Section : The query letter of Bursa Malaysia Securities Berhad of 9 January 2014 on the Joint Venture Agreement entered between Plentiful Harvest Sdn. Bhd. and City Harvest Aquaculture Sdn. Bhd.  for the utilization of land owned by Plentiful Harvest Sdn. Bhd. refers. The Board of Directors of Borneo Aqua Harvest Berhad ("Bahvest") wishes to inform that: The size of the land is 3.613 ha. The utilisation of the land prior to the Joint Venture was Grouper fries hatching and fish rearing operations. There will be no capital or investment outlay by Bahvest as Bahvest's contribution to the Joint Venture project is its fully capitalized land and whatever existing facilities thereon. There is financing required as there will be no capital or investment outlay by Bahvest as Bahvest's contribution to the Joint Venture project is its fully capitalised land and whatever facilities thereon. As there will be no capital or investment outlay by Bahvest, the project risk is considered minimal. The prospect of this Joint Venture project is promising as oyster and its downstream products are highly demanded by the North Asian countries such as China, Taiwan and Japan. The Joint Venture project will continue until any one party chooses to terminate the Joint Venture business by providing a six months' notice in writing to the other party. There will be no impact on the land as the land will remain as the asset of Bahvest. The highest percentage ratio applicable to the Joint Venture pursuant to paragraph 10.02(g) of the Ace Market Listing Requirement is 11.9%. The Joint Venture has no effect on the ownership of the land as the land remains as the property of Bahvest.

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