VISUAL INTERNATIONAL HOLDINGS LIMITED - Lifting of Suspension, Status Update and Renewal of Cautionary Announcement

Lifting of Suspension, Status Update and Renewal of Cautionary Announcement

VISUAL INTERNATIONAL HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2006/030975/06)
(“the Company” or “Visual”)
ISIN Code: ZAE000187407       Share code: VIS

LIFTING OF SUSPENSION, STATUS UPDATE AND RENEWAL OF CAUTIONARY ANNOUNCEMENT

Lifting of suspension
Shareholders are advised that the Company is again compliant with the JSE Listings
Requirements following the publication of its audited year end results, the posting of its
Annual Report and the publication of its interim results for the six months ended 31 August
2016.

Accordingly, the JSE will lift the suspension of trade in the Company’s securities from the
commencement of business on Tuesday, 13 December 2016.

Status update
Shareholders are also reminded of the following events post 31 August 2016, as detailed in
the results announcement published on 12 December 2016:

a)      The Company signed a subscription agreement dated 22 November 2016 for
        33 333 334 shares at 15 cents per share, amounting to a subscription of R5 000 000 of
        which R250 000 has been received and the balance of which is payable within 10
        business days from the lifting of the suspension of the Company.

b)      Visual International has sold Erf 18358 and the remainder of Farm 1286 (known as
        “Stellendale 3”) to an established property developer for development for R15 000 000.
        The proceeds of the transaction will be used to repay creditors and as part funding of
        the operational activities for the Group for the following 12 months. A net loss before
        tax of R2 million was realised on this disposal. The conclusion of this agreement ensures
        that Visual is mostly debt free, enabling it to focus on its main business as a property
        developer and serve to fast track the achievement by Visual of its strategic objective
        to develop the remainder of the Stellendale township. The property has been lodged
        for transfer.

c)      Stellendale Village Proprietary Limited (a subsidiary of Visual International) sold
        inventory known as Erf 24258 for R11 000 000, which proceeds have been used to
        reduce expensive secured creditors, to pay creditors and fund operational activities up
        to the end of October 2016. A net profit before tax of R3.65 million was realised on the
        disposal.

d)      The Company sold 7 rental units for R4 million. A net loss before tax of R1 025 million was
        realised on the disposal of the 7 rental units. The net proceeds of the sale were applied
        to reduce creditors of the Group.

e)      The Company is now at an advanced stage in relation to the finalisation of a
        development agreement on the property in c) above.

f)      Visual International has signed a 10-year corporate head lease with Spar and Spar Tops
        for the anchor tenancies in Stellendale Junction. Keen interest exists for the line shops
        that are available. Visual International is currently in discussions with various parties to
        either develop the property on a joint venture basis or to sell the property.

The directors believe that due to the conclusion of the agreements in a) to d) above and the
expectation that the plans mentioned in e) and f) above will materialise, the Company will
have adequate financial resources to continue as a going concern.

Going forward, Visual eliminated the majority of its debt and creditors and has a positive net
tangible asset value in excess of R55 million and the board will be considering the size and
nature of properties held in order to start its key development initiatives and ensure that it has
sufficient cash and funding resources to grow the resources.

Renewal of Cautionary Announcement
Shareholders are reminded that the Company has entered into acquisition negotiations,
which negotiations are progressing well with the due diligence exercise nearing completion.
Shareholders are accordingly advised to continue to exercise caution when dealing in their
shares until a further announcement is made.


By order of the board
Johannesburg
13 December 2016

Designated Advisor
Arbor Capital Sponsors Proprietary Limited

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