13 December 2023

Asia Strategic Holdings Ltd.

("Asia Strategic", the "Group" or the "Company")

Increased Loan Facility

Asia Strategic Holdings Ltd. (LSE: ASIA), the independent developer and operator of consumer businesses located in emerging Asia, is pleased to announce that it has entered into an amended loan facility with Macan Pte Ltd ("MACAN"), increasing its loan facility by US$1.5 million to US$4.5 million.

On 1 July 2019, the Group secured a loan facility of up to US$3.0 million from MACAN ("Loan Facility 1"). As the Group is accelerating the expansion of its school network, the Group and MACAN have now agreed to increase Loan Facility 1 from US$3.0 million to US$4.5 million. In addition, the Company and MACAN have agreed to extend the repayment date on Loan Facility 1 from 30 June 2024 to 31 December 2027. The loan facility will continue to bear an interest rate of 6% per annum. As at the date of this announcement the amount drawn under Loan Facility 1 is US$3.0 million.

MACAN has also previously subscribed to a US$3.5 million Zero Coupon Convertible Note, details of which are set out in the Company's accounts for the year ended 30 September 2022, published on 31 January 2023.

MACAN is the Company's largest shareholder and owns 960,000 ordinary shares in Asia Strategic representing 32.4 per cent. of the Group's current issued share capital. Enrico Cesenni, CEO, holds 35.1 per cent of the voting rights of MACAN and 1.2 per cent of the voting rights of the Company.

As Enrico Cesenni (CEO of Asia Strategic) is a significant shareholder and director of MACAN, the Company considers that the amendments to the loan facility with MACAN, as detailed above, are material related party transactions as detailed under DTR 7.3.6. The Company's independent directors consider that the terms of the amended loan facility are fair and reasonable and in the best interests of the Company and its shareholders.

For more information, please visit www.asia-strategic.com or contact:

Notes to editors

Asia Strategic Holdings Ltd.  

Asia Strategic Holdings Ltd. (LSE: ASIA) is an independent developer and operator of consumer businesses in emerging Asia. The Company's portfolio focuses on Education and Services with the view to expand within the broader consumer sector and is currently operating in Vietnam and Myanmar, two of the fastest growing economies in the world over the last decade.

Education sector:  the Company operates a range of brands across English language learning, coding, K-12 and tertiary education. As of September 2023, it operated 21 schools, serving ca. 8,700 students.

The Company currently has exclusive development and franchising agreements with Wall Street English to develop English language centres across Myanmar. As of September 2023, Wall Street English Myanmar served over 3,700 students through five centres.

In July 2020, the Company completed the acquisition of the Wall Street English business in Vietnam. Founded in 2013, the WSE Vietnam business operates through eight centres in Ho Chi Minh and Binh Duong serving over 3,700 students.

The Company also operates a joint venture with Auston Institute of Management to develop and operate the Auston University. Auston opened in May 2018 offering diplomas in Engineering Technology, Mechanical Engineering and Networking, Information Systems, and Security. English language learning is also provided by the Company's nearby Wall Street English centre. In February 2020, the Company announced a partnership with Liverpool John Moores University to provide high quality engineering training programmes for young, working professionals in Myanmar, to be taught by its teaching staff in Myanmar. As of 30 September 2023, Auston University served ca. 750 students.

In August 2019 the Company launched its first private K-12 international school, the Yangon American International School ("Yangon American") in Yangon. In July 2021 Yangon American was recognised as an official International Baccalaureate Primary Years Programme ("IB PYP") school by the International Baccalaureate Organization. As of 30 September 2023, Yangon American served ca. 100 students.

In April 2022, the Company entered into an exclusive franchising agreement with Kids&Us for the development of English language schools for children across Myanmar. The first centre opened in Yangon in June 2023. In August 2022, the Company entered into an exclusive franchising agreement with Kids&Us for the development of English language schools for children across Vietnam. The first five centres are operational in Ho Chi Minh. As of 30 September 2023, Kids&Us served ca. 450 students.

In June and August 2023, the Group entered into exclusive franchising agreement with Logiscool, kft ("Logiscool") for the development of coding schools for children under the brand "Logiscool" in Vietnam and Myanmar. The Group opened its inaugural coding school in November 2023 in Ho Chi Minh City.

Services sector:  through its acquisition of EXERA in 2018, the Company offers security, risk management and secure logistics services. Founded in 2013, EXERA employs approximately 1,400 well-trained and high-quality security officers making it one of the largest security services providers accredited to "ISO 18788 Management System for Private Security Companies" in Myanmar.

Furthermore, the Company provides hospitality services, managing two boutique hotels in core tourist locations in Myanmar, Bagan and Mandalay, operating under the award-winning Ostello Bello, a boutique hospitality brand. The Company operates an asset-light strategy, entering into long-term operating and management agreements with local hotel owners.

Vietnam and Myanmar were among the fastest growing economies in Asia in 2017-2020 (Source: Asian Development Bank). Vietnam's annual GDP growth rate is expected to be 6.5% in 2023 and 6.8% in 2024, while Myanmar's is expected to be 2.8% in 2023 and 3.2% in 2024 (Source: Asian Development Bank). The Company is well positioned to provide investors early exposure to Vietnam's and Myanmar's fundamentals, enhanced by ASEAN's wider growth prospects. 

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