Announcement regarding the granting of a call option Notice of preference shareholders meeting Renewal of cautionary 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” Announcement regarding the granting of a call option Notice of preference shareholders’ meeting Renewal of cautionary announcement 1 Introduction BK One preference shareholders (“Shareholders”) are referred to the cautionary announcements published on 28 August 2014 and 10 October 214 and are advised that BK One has entered into a call option agreement in terms of which the Company has granted a call option to Pure Ocean Aquaculture Limited (“the Acquirer”) (“the Call Option”) to acquire the Company’s entire right, interest and title in the claims and shares held in Pure Ocean Aquaculture Proprietary Limited (“POA”) and claims held in Pure Ocean East London Proprietary Limited (“POEL”) (“the Subject Matter”). 2 Rationale for the Call Option As disclosed in the Annual Financials for year ended 28 February 2014, the ability for the company to continue as a going-concern is dependent on the procurement of adequate funding for working capital. Possible sources of working capital were to: - sell part or whole of its respective investments; and / or - recover short-term receivables from its underlying assets; and / or - issue additional shares; and / or - or a combination of the above. The directors are of the view that the out-and-out sale of the whole or part of the Company’s respective investments did not present, at the present time, a realistic alternative. In order to recover short-term receivables from the underlying assets, the underlying assets would need to be fully funded. Various methods to procure funding for the underlying assets were considered and the most favourable option was the Call Option as it was linked to providing working capital and trade finance funding for the Pure Ocean Group, the effect of which will stabilise them into the future while simultaneously securing the possibility of a liquidity event for the Company through the Call Option. Shareholders are also referred to the preference shareholders’ meeting held on 30 September 2014 in terms of which the authorisation of the subscription for and allotment of 800 authorised but unissued ordinary shares in the ordinary share capital of the Company was granted. The subscription for the aforementioned ordinary shares is subject to certain conditions precedent still to be fulfilled, however it is anticipated that these conditions will be fulfilled shortly. The combination of the Call Option and subscription for ordinary shares will in the opinion of the directors adequately provide for the working capital requirements of the Company for the following year. 3 Terms of the Call Option The terms of the Call Option are as follows: 3.1 BK One has granted the Acquirer the Call Option for a period of two years to purchase the Subject Matter; 3.2 in the event that the Acquirer exercises the Call Option, it shall issue convertible loan notes (“CLs”) to BK One in payment for the Subject Matter (“the Purchase Consideration”); 3.3 the Acquirer shall procure a listing of itself as soon as possible after the exercise of the Call Option; 3.4 the outstanding CLs shall bear interest at a rate of 2% per annum, compounded annually until such time as either: - the market capital of the Acquirer reaches US$100 million (“the Conversion Event”); or - the second anniversary of the date on which the CLs were issued by the Company (“the Long Stop Date”); whichever is the earlier (“the Conversion Date”); and 3.5 the Company shall be entitled, at its discretion, at the Conversion Event to serve a conversion notice to the Acquirer to convert all CLs held by the Company into fully paid ordinary shares in the Acquirer at the conversion price on the Conversion Date. 4 Purchase consideration of the Call Option On exercise of the Call Option, the Acquirer will issue CLs in the amount of US$14 577 898.05 as follows: Subject Matter component Purchase consideration US$ Loan claims in POA 9 479 608.56 Loan claims in POEL 3 968 246.00 Share equity of 131 655 050 shares in POA 1 130 043.49 Total 14 577 898.05 5 Notice of preference shareholders’ meeting A general meeting of Shareholders of BK One will be held at 9h00 on Wednesday, 26 November 2014 at Boundary Terraces, 3 Floor, Mill House, 1 Mariendahl Road,Newlands, Cape Town to transact the business as stated in the notice posted to Shareholders on 4 November 2014. The date on which Shareholders must be recorded as such in the register maintained by the transfer secretaries of the Company for purposes of being entitled to attend and vote at the preference shareholders’ meeting as determined in terms of the Companies Act, No 71 of 2008, is Friday, 21 November 2014. 6 Renewal of cautionary announcement BK One continues to be in negotiations in relation to its underlying assets, which if successfully concluded may have a material effect on the price of the Company’s securities. Shareholders are consequently advised to continue to exercise caution when dealing in the Company’s securities until a further announcement is made. Cape Town 5 November 2014 Investment bank and Sponsor Nedbank Capital Date: 05/11/2014 02:58:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 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