LABAT AFRICA LIMITED - Changes to the Previously Published Interim Results Ended 29 February2020

Changes to the Previously Published Interim Results Ended 29 February2020

LABAT AFRICA LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1986/001616/06)
(“Labat Africa” or “the Company”)
ISIN Code: ZAE 000018354 Share code: LAB

CHANGES TO THE PREVIOUSLY PUBLISHED INTERIM RESULTS ENDED 29 FEBRUARY 2020

Shareholders are referred to the interim results for the six months ended 29 February 2020 published on
SENS on 30 April 2020 (“interim results”), the reviewed provisional financial results for the year ended 31
August 2020 published on SENS on 4 January 2021 as read with the change statements and notice of
AGM published on SENS on 16 February 2021 (“audited results announcement”) and the Integrated
Annual Report distributed to shareholders electronically on Tuesday, 16 February 2021 and by post on
Friday, 19 February 2021 (“audited financial statements”).

Shareholders are advised that following the publication of the interim results and prior to the publication
of the audited results announcement, the Company was subject to a JSE Pro-Active Monitoring Review
Process (“Pro-active Monitoring Review”) in respect of its annual financial statements for the year ended
31 August 2019 and the interim results. The Pro-active Monitoring Review resulted in the identification of
the following two errors in the interim results:

(i)  the recognition of an operating expense of R7m and other income of R7m in respect of the recovery
     of costs of R7m incurred on the establishment of the medical cannabis and hemp related products
     business; and
(ii) the incorrect recognition of a R7.6m revaluation of property in other income that was correctly
     recognised at a subsidiary level (Force Fuel Properties Proprietary Limited (“FFP”)) as an investment
     property, but should not have been recognised at a consolidated level due to it being considered
     an owner-occupied property.

These errors resulted in an overstatement of the operating profit in the interim results for 28 February 2020
of R7.6m, which was disclosed as R7 734 000 as opposed to R134k. This had a further impact on the total
comprehensive income and per share information. A further correction has been identified and made
to the headline loss per share. The property, plant and equipment balance and accumulated losses will
also be restated.

The interim results for the six months ended 28 February 2021 will contain a restatement of the
comparative results for the six months ended 29 February 2020 as follows:
STATEMENT OF COMPREHENSIVE AND OTHER INCOME EXTRACTS
                                                                 6 months
                                                              29 February        6 months
                                                                     2020     28 February
                                                               Previously            2020
                                                                published        Restated      Change
                                                                    R’000           R’000       R’000
 Other income                                                      14 651              51     (14 600)
 Impairments                                                            -               -
 Operating expenses                                               (25 893)        (18 893)      7 000
 Operating profit                                                   7 734             134      (7 600)
 Total comprehensive income/(loss)/for the period                   2 806          (4 794)    ((7 600)
 Earnings/(Loss) per share (cents)                                   0.07           (1.23)
 Headline loss per share                                            (0.03)          (2.99)

STATEMENT OF FINANCIAL POSIITON EXTRACTS
                                                              29 February     28 February
                                                                     2020            2020
                                                     Previously published        Restated      Change
                                                                    R’000           R’000       R’000
 ASSETS
 Non-current assets
 Property, plant and equipment                                     34 663          27 063      (7 600)
 EQUITY AND LIABILITIES
 Equity
 Accumulated loss                                                (105 936)       (113 536)     (7 600)

Having been identified prior to the publication of results in respect of the year ended 31 August 2020,
these errors were corrected in the audited results announcement and audited financial statements.

Shareholders are reminded that FFP has been recognised under discontinuing operations at year end
and will also be recorded as such when the interim results are published for the six months ended
28 February 2021. Accordingly, the restated information will not be strictly comparable to the
information presented above.

JOHANNESBURG
11 March 2021

Sponsor
Acaciacap Advisors Proprietary Limited

Date: 11-03-2021 09:00:00
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