Oriental Kopi will provide additional future revenue streams for YKGI, while enabling them to leverage on the business networks and know-how, and to acquire and develop the group’s expertise in operating traditional coffee houses in Singapore.
The initial paid-up capital of the company will be $1 million, whereby 90% and 10% is contributed by YKGI and Oriental Kopi respectively.
In the event any additional capital contribution to the JV Company is required, 80% and 20% of such capital contributions shall be contributed by YKGI Ventures and Oriental Kopi, respectively.
The joint venture will commence on the date of the agreement, and continue for a period of five years with an option for renewal for a further five years, subject to mutual agreement.
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Shares in YKGI closed 0.4 cents lower, or 3.39% down, at 11 cents on Aug 15.
