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– Translation –
Lor Khor.19/2565
10 June 2022
Subject: Clarification on investment in crypto-currency KUB Coin
To: Deputy Secretary-General of the SEC Office
According to the letter of notification No.SEC.Jor Tor-2.1224/2565, Subject Requesting the Company to clarify the case of investing in digital assets of KUB Coin dated June 2, 2022 by clarification in writing to the SEC and disseminating the explanation through the information system of the Stock Exchange of Thailand.
TPCS Public Company Limited (TPCS) would like to clarify the case of investing in crypto-currency, KUB Coin, as follows:
1.Benefits and suitability of the company’s business in investing in digital assets as a validator node
The company invests in digital assets for learning purpose and studying how digital currency can benefit business operations.It also promotes the image of the company to be a leader in Blockchain technology, which the company is interested in investing or expanding new businesses on Blockchain technology and digital assets.
The benefit of becoming a validator node is the fee received from its verification duty performed in return.
2.
Investment decision in KUB Coin and opinion of the Board of Directors.
The company started investing in KUB Coin to become validator node with the aim of learning and studying how digital currency can benefit business operations, since it has been increasingly accepted at present and could be a new payment channel of the company in the future.
The payments through this digital currency is under the Royal Decree on Digital Asset Business B.E.
2561.By requesting for an approval to open a digital asset trading account with Bitkub Online Co., Ltd.from the Executive Committee No.5/2564 on April 8, 2021, the resolution passed as 4 company directors were at present.The investment in digital assets at fair value price appear in the company’s financial statements since the start of investment.The financial statements are reviewed by a certified public accountant.The financial statements has been considered and approved by Audit Committee and the Board of Directors respectively in each quarter.Overall, the Board of Directors is satisfied with the increase in operating results.
The Board of Executive Directors No.2/2022 on February 11, 2022, with 5 Company Directors who are Executive Directors, has approved the signing of the MOU Node Validator agreement as well as approving the rules and guidelines for the Company’s investments.
The Board of Directors has approved policies and guidelines for investing in digital assets, Investment limit in digital assets, and the management’s reports are monitored on a quarterly basis.
The minutes of the Board of Directors and agreements related to the matter have been delivered to the SEC Office.
However, due to the volatility and decline in the price of KUB coins, the company has reviewed and considered its investment plan and regularly follow-up the information.
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3.Investment plan, investment value, its progress, and minimum buyback guarantee agreement.
TPCS invested with a budget of 35 million Baht by buying from Exchange.
It is a long-term investment
and has not been sold.The company is holding 247,106 KUB coins, the average cost is 141 Baht/KUB without any minimum-price buyback guarantee.Currently, TPCS does not have any plan to invest in other digital assets other than its purpose of being a Node Validator.
TPCX Company Limited (TPCX), a subsidiary of TPCS, invested approximately 20 million Baht by purchasing in a Bulk Load Program, which has a minimum-price buyback agreement from Bitkub Blockchain, amounting to 62,500 KUB coins at the average cost of 312 Baht/KUB with the objective of participating as a Node Validator.
In addition, TPCX has involved in Trading Activity, unlike TPCS, with a limit of not more than 10 million Baht of KUB coins.The transactions are performed in the Bitkub Exchange.
4.The effect of today’s drastic drop in coin value to the company’s financial and operating status and company’s measures
At present, the investment of the company is slightly affected by the drop in KUB value, thus it does
not significantly affect the financial position of the company.
Please be informed accordingly.
Yours sincerely,
Mr.ChaninRatanavijai
……………………………………………
(Mr.
ChaninRatanavijai)
Director and Corporate Secretary
Corporate Secretary.
Tel.0-2294-0071 ext.221.