Tricubes secured RM5.3 million MAVCAP funding for MyEmail; MAVCAP goes “Huh?”

MyEmail service provider, Tricubes Berhad held a media briefing on Tuesday April 26 in a move to clarify the highly criticized project which was announced by the Prime Minister Datuk Seri Najib Razak last week.

During the briefing, CEO Khairun Zainal Mokhtar revealed that Tricubes had secured from venture capital – RM 5.3 million in convertible securities for the MyEmail project. The CEO was quoted by The Star as saying, “We have secured an initial investment of RM5.3mil from MAVCAP (Malaysia Venture Capital Management Bhd) and the balance will be funded through equity, debt or a rights issue.”

Yesterday, it was reported by The Malaysian Insider that MAVCAP clarified that its RM5.5 million investment was meant for the development of mobile solutions in Tam Tam Sdn Bhd, a subsidiary of Tricubes Berhad. That means, the MAVCAP investment is NOT for the MyEmail project. This revelation will no doubt intensify speculation over Tricubes’ financial health.

MyEmail users need to buy biometric device During the Tuesday briefing, Tricubes CEO also revealed that although subscribers will not have to pay for basic e-mail facilities, they will have to fork out an additional sum for a biometric device should they require a more secure end-to-end data encryption. He explained that users can subscribe to Myemail by registering at the National Registration Department or by doing it themselves; this latter step is where the biometric device comes in, although no price was disclosed for it. He however clarified that those using the basic email facilities will still be encrypted with Secure Sockets Layer (SSL).

What MyEmail can offer Khairun stated that in addition to the MyEmail service, through which users can receive bills and notifications, Tricubes would also set up a portal where value-added services including social networking, online bill payments, and job boards would be offered.

MyEmail helps Government agencies save money Those who wish to send emails to Myemail accounts will have to pay a maximum of 50 sen an email and according to Tribubes’ estimate, agencies will save at least RM200mil in the next 10 years, as the digital process eliminates document generation, sorting and enveloping and distribution.

Target Tricubes target to launch MyEmail service by July 2011 and aims to sign up 5.4 million users by year-end. There is an estimated total of 16.9 million Internet users in Malaysia (ITU; 2010 estimate). That means, Tricubes is targeting for roughly 32% penetration rate of total Malaysian Internet population by end of 2011.

On the company’s GN3 status Khairun said that the status in the Bursa Malaysia ACE market does not stop Tricubes from doing business; it only affects the listing status but their ability to execute projects. Khairun added that Tricubes’ debt, lease and financial obligations are up-to-date and that its shareholders’ fund is positive.

Tricubes is required to submit its regularisation plan by October this year and has appointed M&A Securities as their regularisation sponsor and is expected to submit their plan before the deadline set by Bursa Malaysia.


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