NAGACORP (03918) announced an update regarding the development and construction of Naga 3, a multifunctional entertainment and integrated resort facility in Phnom Penh, Cambodia. Due to changes in the external macroeconomic environment since the subscription agreement was signed in April 2019, the subscriber and the company held discussions on ongoing funding requirements and the project timeline. After careful consideration, both parties mutually agreed that terminating the subscription agreement aligns with their respective best commercial interests.

On December 15, 2025, the company and the subscriber entered into a mutual termination deed, agreeing to: (a) terminate the subscription agreement and all related rights and obligations; (b) waive any and all claims, liabilities, or obligations arising from the agreement; (c) release each other from all commitments under the subscription agreement; and (d) relinquish all rights and interests related to the agreement.

As part of the termination terms, the $316 million cash advance paid by the subscriber has been forfeited by the company and recorded as reserves, with no obligation to issue settlement shares. The board confirmed that terminating the agreement will not materially impact the group’s existing operations or financial position.

To uphold corporate governance standards, Mr. Zeng Yufeng, a director representing both the subscriber and the company, abstained from related discussions and decisions.

Despite the termination, NAGACORP reaffirmed its commitment to proceed with the Naga 3 project. The company will reassess the remaining development plan and explore alternative funding options if necessary.