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Notice of application for voluntary business rescue and suspension of all Chemspec securities on the JSE
Chemical Specialities Limited
Incorporated in the Republic of South Africa
Registration number 2005/039947/06
Share code: CSP &CSPP
ISIN: ZAE000109427 & ZAE000184305
("Chemspec" or "the Company")
NOTICE OF VOLUNTARY BUSINESS RESCUE AND SUSPENSION OF ALL CHEMSPEC
SECURITIES ON THE EXCHANGE OPERATED BY THE JSE LIMITED WITH
IMMEDIATE EFFECT
Shareholders are referred to the group restructure and cautionary
announcement released on SENS on 19 November 2014, the Interim
Financial Statements for the six months ended 31 September 2014
released on SENS on 24 December 2014 and the renewal notices
released on SENS on 06 January and 07 February 2015. The
announcement referred to, inter alia, the need for an injection of
capital in the 2015 calendar year and that as a result, the Company
had entered into negotiations with its major shareholders to raise
additional capital. Unfortunately, these negotiations have not been
successful and the expected financial support was declined this
week.
By virtue of the above, the board of directors (the “Board”) of
Chemspec have concluded that Chemspec is now financially
constrained. There appears however, to be a reasonable prospect of
rescuing the Company and a decision has therefore been taken to
commence with voluntary business rescue proceedings for the Company
as provided for by section 129 of the Companies Act, No71 of 2008,
as amended. A Board resolution to this effect has been filed with
the Companies and Intellectual Property Commission on 11 March
2015.
The Board of Chemspec is of the opinion that the implementation of
business rescue will afford the Company the opportunity to develop
and implement a business rescue plan in a manner that will optimise
the likelihood of Chemspec continuing to exist as a going concern.
The Company is in discussions with prospective funders with regards
to post commencement financing.
As a result of the above, Chemspec has requested the JSE Limited
(“JSE”) to suspend trading in both the ordinary and preference
shares, share codes CSP and CSPP with immediate effect. The JSE has
agreed to the suspension.
Shareholders will be updated as further material information
becomes available.
Durban
11 March 2015
Designated Advisor:
Grindrod Bank Limited
Date: 11/03/2015 05:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
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