AFRICAN DAWN CAPITAL LIMITED - Update On Elite Transaction And SARS Update

Update On Elite Transaction And SARS Update

AFRICAN DAWN CAPITAL LIMITED
Incorporated in the Republic of South Africa
(Registration number: 1998/020520/06)
Share code: ADW
ISIN Code: ZAE000060703
(“Afdawn” or “the Company”)

UPDATE ON ELITE TRANSACTION AND SARS UPDATE

Shareholders of Afdawn are referred to the announcements released by the
Company on SENS on 7 December 2015, 22 January 2016, 28 June 2016 and 30
November 2016 (“Transaction Announcements”) relating to the proposed
disposal by Afdawn of its 100% shareholding in Elite Group Proprietary
Limited, African Dawn Property Transfer Finance 1 Proprietary Limited and
African Dawn Property Transfer Finance 2 Proprietary Limited, currently
wholly-owned   subsidiaries  of  Afdawn,   to  Dzothe  Finance Solutions
Proprietary Limited (“Dzothe”) (“Elite Transaction”) and to the Circular
issued by the Company on 16 September 2016 relating to, inter alia, the
Elite Transaction (“Circular”).

Shareholders are advised that despite extensive negotiation Dzothe remains
in breach of its obligations in terms of the Elite Transaction as it has
failed to pay the relevant portion of the purchase consideration to Afdawn
in accordance with the terms of the transaction.

Accordingly shareholders are hereby advised that Afdawn has exercised its
right to cancel the Elite Transaction and reserved it rights to claim and
recover damages.

Shareholders are further advised Afdawn is continuing its engagement with
the South African Revenue Service in order to settle the longstanding SARS
claim against the Company. Shareholders will be advised of any further
developments in due course.

Cape Town
17 May 2017

Sponsor
PSG Capital Proprietary Limited

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