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GOLD BRANDS INVESTMENTS LIMITED - Cautionary Announcement - Gold Brands signs MOU to open Chesanyama in the USA

Release Date: 24/02/2016 07:05
Code(s): GBI     PDF:  
Wrap Text
Cautionary Announcement - Gold Brands signs MOU to open Chesanyama in the USA

GOLD BRANDS INVESTMENTS LIMITED
Incorporated in the Republic of South Africa
Registration Number: 2015/168426/06
Share code on the JSE: GBI
ISIN: ZAE 000212791
("Gold Brands" or "the Company")

CAUTIONARY ANNOUNCEMENT - GOLD BRANDS SIGNS MOU TO OPEN 
CHESANYAMA IN THE USA

River Group is authorised to announce that the board has entered into a memorandum of 
understanding ("MOU") with Red Hornbill (Pty) Ltd and the White Family Limited Partnership to 
jointly establish CHESA NYAMA HOLDINGS USA LLC in the USA to launch the Chesanyama 
brand in the USA by way of an Area Development Agreement ("ADA") under the USA laws and if 
successful to subsequently franchise the Chesanyama brand and concept in the USA.

The MOU is subject to regulatory approvals where necessary and contains the following broad 
principles:

*Gold Brands shall subscribe for 30% of the entire issued share capital in Chesa Nyama USA 
 LLC at nominal value;
*Any Intellectual Property that each of the Parties have remains their exclusive Intellectual 
 Property, and neither of the Parties may use the other Parties' Intellectual property;
*Chesa Nyama USA LLC shall pay Gold Brands the cost of the ADA;
*The opening of the first store in the USA's, anticipated date of the opening will be on or before 
 the end October 2016;
*Gold Brands shall not be required to provide any capital requirements towards the expansion of 
 the Chesa Nyama brand in the USA;
*Red Hornbill and the White Family Partnership shall fund on loan account such amounts as may 
 be required by Chesa Nyama USA LLP in its roll out of the franchise in the Territory such loan 
 accounts shall be subordinated to the Franchising Fees payable to Gold Brands;
*Furthermore, there shall be no restriction on the declaration of dividends;
*Gold Brands shall be required to provide logistical support and all related management support 
 towards the product line, branding, menu costing, including strategic support towards the roll-out 
 of the Chesa Nyama Brand in the United States of America; and
*The shareholding of Chesa Nyama USA LLP shall be as follows:
 - Gold Brands: 30%;
 - Red Hornbill: 40%; and
 - The White Family Partnership: 30%

Cautionary Announcement
Shareholders are advised, that this MOU is subject to the finalisation of detailed agreements, which if 
successfully concluded may have a material effect on the price of the Company's securities. 
Accordingly shareholders are advised to exercise caution in dealing in the Company's securities until 
a full announcement is made.

Johannesburg
24 February 2016
Corporate and Designated Adviser
River Group



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