RARE HOLDINGS LIMITED - Trading Statement and Notification Regarding Debt Funding Facility

Trading Statement and Notification Regarding Debt Funding Facility

RARE HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
Registration Number: 2002/025247/06
Share Code: RAR ISIN: ZAE000180626
("Rare" or "the Company")

TRADING STATEMENT AND NOTIFICATION REGARDING DEBT FUNDING
FACILITY

TRADING STATEMENT

In compliance with paragraph 3.4 of the Listings Requirements
of the JSE Limited, a listed company is required to publish a
trading statement as soon as they are satisfied that a
reasonable degree of certainty exists that the financial
results for the next period to be reported on are likely to
vary by more than 20% from the previous corresponding period.

Shareholders are advised that the Company expects the loss per
share and headline loss per share for the year ended 30 June
2016 to increase by at least 100% compared with that of the
prior comparative period, being the year ended 30 June 2015.

Rare continued to suffer operating losses in an extremely
difficult market. Contraction in demand combined with an
oversupply of HDPE pipe products in the South African market
contributed largely to the operating loss. The pipeline
services division did not secure an ‘anchor’ transaction for
the year and its performance continues to be adversely
affected by a reduction and/or postponement of capital
projects in South Africa and neighbouring countries. The
trading division performed more or less in line with the
previous year, but uncertainty with regards to the renewal of
major contracts is a concern going forward. The water division
did not produce any sales during the period under review.

A further more detailed trading statement will be published in
due course.

The information in this trading statement has not been
reviewed or reported on by the Company`s auditors.

DEBT FUNDING FACILITY

Shareholders are referred to the R50 million loan (“Loan”)
granted to Rare by Mayfair Speculators (Pty) Limited
(“Mayfair”) as set out in the Company’s annual report, which
Loan including accrued interest was due to be repaid on 31
July 2016. At year end of 30 June 2016 the Loan including
accrued interest amounted to R58 723 800.

Mayfair has notified Rare that it will postpone the repayment
date of the Loan to 31 October 2016.

Mayfair has financed Rare notwithstanding the tough trading
conditions experienced by Rare and a declining market all of
which has resulted in losses by Rare over a period of more
than three years. In light thereof, Mayfair has indicated to
Rare that the current pricing of the Loan does not reflect the
associated credit risk and will require review.

Mayfair has reaffirmed its commitment to Rare as a major
shareholder and more recently, in its role as a consortium
partner to the offer to minorities announced on SENS on 22
June 2016.

Rare has started engaging with commercial funders for a
revised funding line.

By order of the Board
Kliprivier

15 August 2016

Designated advisor: PSG Capital (Pty) Limited

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