KUALA LUMPUR (Oct 3): Technology company Techna-X Bhd (KL:TECHNAX) has called off its plans to develop an 85-acre microalgae farm and produce algae biofuel following the mutual termination of a tripartite agreement.

Techna-X Aerobeidou Sdn Bhd, its wholly owned subsidiary, alongside MYKO Global Sdn Bhd and RTA E&C Sdn Bhd, had agreed to mutually terminate the agreement, according to the group bourse's filing on Thursday. No further details on the reasons behind the termination were provided.

“The termination agreement will not have any significant impact on the earnings, gearing and substantial shareholders’ shareholding,” Techna-X said.

The project, first announced in June 2023, involved a US$120 million (RM577.4 million) investment from Techna-X. Nonetheless, MYKO had committed to securing 98% of the financing, with Techna-X responsible for the remaining 2% (US$2.4 million) via a bank guarantee.

Under the initial plan, MYKO was to provide the technology and patents to manage the production facility, and RTA E&C was to be the engineering, procurement, construction and commissioning contractor for the project.

Meanwhile, Techna-X was to be the investor and Internet of Things technology partner for Malaysia and East Africa.

The farm was projected to yield at least 36,000 metric tonnes of crude algae oil annually, which was expected to generate approximately US$40 million in revenue per year.

MYKO and RTA E&C have two common shareholders: Lee Byungok, who serves as the chief executive officer of both companies, and Wan Nurfazilah Izzudin, the managing director of RTA and a director at MYKO.

Lee holds 52% of MYKO and 30% of RTA E&C, while Wan Nurfazilah owns 24% of MYKO and 70% of RTA.

Shares of Techna-X ended Thursday at 13 sen, down half a sen or 3.7%, giving the company a market capitalisation of RM30.04 million. Year-to-date, the stock has tumbled 56.67%.