Sharenet Sites 
Sharenet Sites
Cautionary announcement and confirmation of drawdown against the funding agreement
LABAT AFRICA LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1986/001616/06)
(“Labat” or “the Company”)
ISIN Code: ZAE 000018354 Share code: LAB
CAUTIONARY ANNOUNCEMENT AND CONFIRMATION OF DRAWDOWN AGAINST THE FUNDING
AGREEMENT BETWEEN LABAT AND MILOST GLOBAL INC (“MILOST”) AT AN ISSUE PRICE OF 64
CENTS PER SHARE BEING A 50% PREMIUM ON THE 5 DAY VWAP
CAUTIONARY ANNOUNCEMENT:
Shareholders are advised that the Company has entered into acquisition negotiations, which, if
successfully concluded, may have a material effect on the price of the company’s securities.
Accordingly, shareholders are advised to exercise caution when dealing in the company’s
securities until a full announcement is made.
MILOST EQUITY SUBSCRIPTION AGREEMENT (“Mesa Agreement”) - DRAW DOWN NOTICE:
Shareholders are advised that in accordance with the Mesa as announced on SENS 7 February
2017. Labat has issued and delivered three drawdown notices to Milost Global at an issue price
of R0.64 (ZAR) per share totalling R5m (Five million Rand).
The net proceeds of the first draw down of R1m (one million Rand) has been received from
Milost in the Labat bank account and the application to list the shares is being attended to.
The closing bid price for the trading day on the 5 day average immediately preceding the date
of this notice was Friday 21 July 2017 on the Johannesburg Stock Exchange (JSE).
The draw down amount of shares applicable to the first subscription notice is 1 640 625 (One
million six hundred and forty thousand six hundred and twenty five) ordinary shares, which
includes 78 125 (Seventy eight thousand one hundred and twenty five shares) in respect of the
commitment fees payable in accordance with the Agreement.
The price applicable to the second drawdown notice is R0.64c for (ZAR) 1 000 000.00 (One
million Rand), which is expected to be received on or about 9 August 2017
The price applicable to the third drawdown notice is also R0.64c for (ZAR) 3 000 000.00 (Three
million Rand) which is expected to be received on or about 11 August 2017
The Milost’s funding agreement is divided into two parts.
- A R250 million equity facility for the subscription of shares in Labat Africa will be used
primarily for working capital purposes. This equity component will be subscribed at a 50%
premium to the 5 day volume-weighted average share price for each draw down,
which shares are expected to be issued under the Company’s general authority to issue
shares for cash. Based on the Company’s share trading price, a mechanism exists for a
defrayment amount to be settled through the issue of Labat shares. This will also be
settled under the Company’s general authority to issue shares for cash, provided that the
issue price is within the limits set by the general authority, failing which the issue of shares
may require shareholder approval.
- A R750m convertible debt facility will be used to finance acquisitions.
This equity and funding facility will assist Labat in its expansion strategy in the transport and
logistics sector as well as other sectors. The company is currently reviewing a number of possible
opportunities that it believes will add value to the Company.
8 August 2017
Johannesburg
Sponsor
Arbor Capital Sponsors Proprietary Limited
Date: 08/08/2017 03:16:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
