LABAT AFRICA LIMITED - Launch CannAfrica Store Completion of CPs Update on Force Fuel Business Rescue Update Verityhurst & Renew Cautionary

Launch CannAfrica Store Completion of CPs Update on Force Fuel Business Rescue Update Verityhurst & Renew Cautionary

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


VOLUNTARY ANNOUNCEMENT ON CANNAFRICA STORE LAUNCH, COMPLETION OF
CONDITIONS PRECEDENT, UPDATE ON THE FORCE FUEL (PTY) LTD, FORCE FUEL PROPERTIES
(PTY) LTD BUSINESS RESCUE PROCEEDINGS, VARIATION OF SUBSCRIPTION AGREEMENT WITH
VERITYHURST PROPRIETARY LIMITED (“VH”) AND RENEWAL OF CAUTIONARY ANNOUNCEMENT



1    VOLUNTARY ANNOUNCEMENT IN RELATION TO CANNAFRICA
     The Board advises that the first CannAfrica store was opened in Woodridge Shopping
     Centre, Tyger Valley in Cape Town last week and CannAfrica has commenced with
     the licensing of retail stores to third parties. Labat is happy to announce that the first
     25 stores have already been successfully allocated. CannAfrica stores will also be
     launched in Bryanston and Hartbeespoort over the next 6 weeks. Labat holds 70% in
     CannAfrica Proprietary Limited as previously announced.

2.   COMPLETION OF CONDITIONS PRECEDENT
     Shareholders are advised that the remaining conditions precedent for both the
     acquisition of 70% of CannAfrica Proprietary Limited and 70% of BioData Proprietary
     Limited have been met, with the commencement of the consolidation of the results
     commencing from 1 September 2020, being the new financial reporting year for
     Labat.

3.   UPDATE ON THE VARIATION OF SUBSCRIPTION AGREEMENT WITH VH
     Shareholders are referred to the announcement released on the Stock Exchange
     News Service on 8 September 2020 relating to the Company’s extension of the closing
     dates for the two tranches of the VH to 30 September 2020 and 31 October 2020
     respectively and are advised that it is intended that the agreement will be varied to
     provide for the loan of funds to Labat Africa on a draw down basis, with a conversion
     right into shares in Labat Africa under the General Authority on or before 31 August
     2021, provided that VH is not a related party as defined in the JSE Listings Requirement
     at the time of conversion, failing which shareholder approval will be required.

     The loan will bear interest at the prime rate. Shares that were subscribed for during
     August 2020 have been issued and listed. An application will be made to issue and list
     the balance of shares subscribed for to date in terms of the subscription agreement.
     VH is not a related party to Labat Africa at the date of this announcement.
     Shareholders are advised that Labat Africa will be continuing with the bookbuild as
     previously announced.

4.   ANTICIPATED TRANSACTION TO DISPOSE OF FORCE FUEL AND FORCE FUEL PROPERTIES
     Shareholders are referred to the announcement released on SENS on 30 July 2020
     advising affected persons of the approval of the Force Fuel (Pty) Ltd and Force Fuel
     Properties Pty) Ltd (together, “the companies”) business rescue plans (together, “the
     Business Rescue Plans), which Business Rescue Plans provide for a bidding process by
     which prospective investors may make an offer for the companies. Shareholders are
     advised that in accordance with the parameters for the bidding process, the
     successful bid is expected to, at a minimum, result in a Category 2 disposal transaction
     being concluded by the Company and the process is ongoing.

     Further details of the anticipated disposal including the final terms thereof, will be
     announced once the successful bid has been approved.

5.   RENEWAL OF CAUTIONARY ANNOUNCEMENTS
     Shareholders are referred to item 4 above and the various cautionary announcements
     published on SENS, the last of which was dated 8 September 2020, and are advised to
     continue exercising caution when trading in the Company’s shares until such time as
     further announcements in respect of the above corporate actions are made.

Johannesburg
21 October 2020

Sponsor
AcaciaCap Advisors

Date: 21-10-2020 04:13:00
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