Detailed Cautionary Announcement -Acquisition of a Retirement Business & Property and Renewal of Cautionary PEMBURY LIFESTYLE GROUP LIMITED (Incorporated in the Republic of South Africa) (Registration number 2013/205899/06) (“PL Group” or “the Company”) ISIN Code: ZAE000222949 JSE Code: PEM DETAILED CAUTIONARY ANNOUNCEMENT RELATING TO THE ACQUISITION OF A RETIREMENT BUSINESS AND THE PROPERTY FROM WHICH IT OPERATES AND RENEWAL OF CAUTIONARY ANNOUNCEMENT 1. Background PL Group shareholders are advised that PL Group, has, through its wholly-owned subsidiaries, PLG Retirement Villages (Pty) Ltd (“Business Purchaser”) and PLG Properties (Pty) Ltd (“Property Purchaser”) entered into two separate agreements for the acquisition of the business (“Business” or “Business Acquisition”) and the property ("Property” or “Property Acquisition”) on which a retirement village and nursing home are located, for a combined consideration of R36 000 000 (“the Acquisitions”). 2. Terms of the Acquisitions The Property The Property will be acquired from the vendor (“Property Vendor”) for a consideration of R33 000 0000 (“Property Consideration”) payable as set out below: - R19 000 000 in cash against the registration of the property in the name of the Property Purchaser, which payment shall be secured by way of a bank guarantee in a form acceptable to the Property Vendor; - The balance of R14 000 000 will be payable by the issue of such number of PL Group shares to the Property Vendor as will be determined with reference to the 3-month Volume Weighted Average Price (“VWAP”) of PL Group’s shares immediately preceding the date of transfer of the property into the Property Purchaser’s name. The Business The Business will be acquired from the owner (“Business Vendor”) for a consideration of R3 000 000 (“Business Consideration”) payable as set out below: - R1 000 000 in cash payable to the Business Vendor on the effective date as detailed in paragraph 4 below, which payment shall be secured by way of a guarantee pursuant to the Business Purchaser being granted funding from a recognised financial institution; - The balance of R2 000 000 will be payable by the issue of such number of PL Group shares to the Business Vendor as will be determined with reference to the 3-month VWAP of PL Group’s shares on or before the effective date. 3. Description of the Business and the Property The Business provides rental accommodation for the aged and has been in operation for approximately 23 years and has 72 residents as at the date of this announcement. The Property comprises 64 retirement rooms and a frail care facility. 4. Effective Date The effective date in terms of the Property acquisition will be the date of the registration of the Property into the Property Purchaser’s name (“Effective Date”) and the effective date for the Business acquisition (“Business Effective Date”) will be the first day of the month following the month in which the Property is transferred to the Property Purchaser. 5. Rationale for the Acquisitions As with the recently announced acquisition of a property in Bryanston, the acquisition of the Property is in line with the PL Group’s long-term strategy to, where practical and reasonable, own and be in control of the properties from which its subsidiaries operate. The acquisition of the Business will add to PL Group’s portfolio of retirement villages, and will be the first PL Group retirement village in Kwa-Zulu Natal. 6. Conditions precedent The Acquisitions are subject to the following conditions precedent: Business - The completion of a due diligence by the Business Purchaser within a period of 21 working days from the date of the agreement; - The approval of the Business acquisition by the Board of directors of the Business Purchaser and the PL Group; - The obtaining of a bank approved loan to the value of R1 000 000 by the Business Purchaser on or before 28 February 2018 and the issuing of a guarantee payable to the Business Vendor on the Business Effective Date within 30 days of the approval of the loan; - The approval and issue by the PL Group on or before the Business Effective Date of PL Group shares at a value and number sufficient to comprise the remainder of the Business Consideration as set out in paragraph 2 above; and - The transfer of the Property into the Property Purchaser’s name having been registered at the Deeds Office. Property - The due fulfilment of the terms and conditions of the Business acquisition; - The completion of a due diligence by the Property Purchaser within a period of 21 working days from the date of the agreement; - The approval of the Property acquisition by the Board of directors of the Property Purchaser and the PL Group; - The obtaining of a bank approved loan to the value of R19 000 000 by the Property Purchaser on or before 28 February 2018 and the issuing of a guarantee payable to the Property Vendor on the Effective Date within 30 days of the approval of the loan; as disclosed in paragraph 4 above; - The approval and issue by the PL Group on or before the Effective Date of PL Group shares at a value and number sufficient to comprise the remainder of the Property Consideration as set out in paragraph 2 above 7. Property Specific Information Property specific information will be announced in due course. 8. Classification of the transaction The Acquisitions are classified as a category 2 transaction in terms of the JSE Listings Requirements. Accordingly, shareholder approval of the Acquisitions is not required. Neither the Property Vendor nor the Business Vendor are related parties to PL Group. 9. Financial Information The Company has calculated an estimated value of the Property at approximately R33 000 000, being the Property Consideration. The net asset value of the Business and the profit attributable to the Business will be published in due course, following the completion of the due diligence referred to in paragraph 6 above. 10. Renewal of cautionary announcement Shareholders are referred to the cautionary announcement dated 25 October 2017 and are advised that negotiations relating to potential acquisitions of additional retirement assets are still on-going. In addition, due to the sensitive nature, early stage of the Acquisitions and the number of conditions precedent, the details of the Property Vendor, the property specific information and the financial information will only be announced pursuant to the completion of certain of the conditions precedent, including the due diligence and approval of funding. Accordingly, shareholders are advised to continue to exercise caution when dealing in the Company’s securities. BY ORDER OF THE BOARD 22 November 2017 Johannesburg Designated Advisor Arbor Capital Sponsors Proprietary Limited Date: 22/11/2017 05:36:00 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. 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