BK ONE LIMITED - Company update and cautionary announcement

Company update and cautionary announcement

BK One Limited
Incorporated in the Republic of South Africa
Registration Number: 2011/008103/06
Preference Share Code: BK1P
ISIN: ZAE000161352
(“BK One” or “the company”)

Company update and cautionary announcement

Company update

Shareholders are referred to BK One’s results announcement for the year ended 28
February 2015 released on SENS on 29 May 2015 (“the results announcement”). The results
announcement noted that “the company continued to face challenging headwinds with
respect to the procurement of finance for itself, and in particular for its portfolio companies,
however these challenges have been largely overcome and new financing arrangements
were either successfully concluded or were close to completion at year end (and have
subsequent year end been successfully concluded) in order to secure working capital and
trade finance for the portfolio companies. It should be noted that while the working capital
and trade finance facilities have been secured, initial advances had not been received in
respect of all of the facilities as at the date of this report”.

In this regard, BK One advises shareholders as follows:

   -   Notwithstanding the conclusion of various financing arrangements referred to in the
       results announcement, in particular with respect to one of BK One’s portfolio
       companies, Advance Vacuum Alloys Proprietary Limited (“AVA”), the working capital
       facilities have not been provided by the relevant funder;
   -   AVA held an extraordinary general meeting of its shareholders on 7 October 2015
       (“the AVA shareholders’ meeting”), to determine the impact of the inability to
       secure the necessary working capital facilities;
   -   The AVA shareholders’ meeting has been postponed until 14 October 2015 to allow
       the directors of AVA sufficient time to investigate and report back to the AVA
       shareholders on the possibility of obtaining further funding for AVA and/or other
       alternative/s available to the business;
   -   Given that AVA is one of only two investments in BK One’s portfolio, the failure by
       AVA to secure the necessary working capital funding, and the possibility that other
       funding alternatives may not be secured, may have a material impact on BK One’s
       business and results of operations (this information has not yet been reviewed or
       reported on by BK One’s auditors).

Cautionary announcement

In light of the above update, and until such time as the AVA directors have explored all
available funding alternatives available to the business, shareholders are advised to exercise
caution when dealing in BK One’s preference shares until a further announcement is made
giving full details of the impact of the above update on the company’s financial position.
Cape Town

7 October 2015

Sponsor
Nedbank Corporate and Investment Bank

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