AFRISTRAT INVESTMENT HOLDINGS LIMITED - Quarterly Progress Report - 30 September 2022

Quarterly Progress Report - 30 September 2022

AFRISTRAT INVESTMENT HOLDINGS LIMITED
Incorporated in the Republic of South Africa
Registration number: 1998/013215/06
JSE Code: ATI - ISIN: ZAE000305959
Debt Issuer Code: ATID
Hybrid Issuer Code: ATIG
(“Afristrat” or “the Company”)


QUARTERLY PROGRESS REPORT – 30 SEPTEMBER 2022


Holders of securities are referred to the SENS announcement dated 5 August 2022 relating to the suspension
by the JSE Limited (“JSE”) of Afristrat’s securities as a result of its failure to publish its annual financial
statements for the year ended 31 March 2022 within the prescribed period (“the Suspension”).

In line with paragraph 1(11)(c) of the JSE Listings Requirements, Afristrat is required to provide holders of
securities with an update on the state of the affairs of the Company, on a quarterly basis, until the Suspension
is lifted.

Accordingly, holders of securities are referred to the following announcements released on SENS (and using
the terms defined therein unless otherwise stated), and relevant updates thereto:

-     the ‘Late submission of Annual Financial Statements update’ announcement dated 5 August 2022 stating,
      inter alia, that the Company’s audited annual financial statements for the year ended
      31 March 2022 (“AFS”) are only expected to be distributed on or before 30 November 2022;

-     the ‘Resignation of External Auditor’ announcement dated 15 August 2022 advising of the resignation of
      Nexia with effect from 12 August 2022, which resignation would have a further negative impact on the
      release of Afristrat’s AFS and that the Board had commenced the process of appointing new external
      Auditors. The Board hereby advises that it is still evaluating a proposal from a prospective auditor and
      an announcement will be made in due course. The publication of Afristrat’s AFS and distribution of its
      annual report remain subject to the appointment of an auditor approved by the Board and
      commencement of the audit;

-     the ‘Business Update on Afristrat’s listed note and equity investment in FirstCred Limited Botswana’ dated
      26 August 2022 advising, inter alia, that the Investigation initiated by FirstCred (previously Getbucks
      Limited Botswana), which was finalised in August 2022, revealed gross misuse of the BWP120 million
      raised from investors by the former management of Getbucks Limited Botswana between 2017 and 2019
      and that FirstCred has since initiated civil and criminal action against former management and their
      associates who were found to have participated in the aforementioned loss of investors’ funds, which
      included an amount of BWP50 million invested by Afristrat. As requested by FirstCred’s existing
      executives, on 19 August 2022 the High Court granted an order of Judicial Management to allow the
      company an opportunity to resolve its debt position, which surfaced from the mismanagement and
      misappropriation of funds by former management. While the Board believes the aforementioned Judicial
      Management of FirstCred will further negatively impact the Company’s liquidity, it will provide an
      opportunity to potentially recover some of its investment value and in so doing, rebuild value for all
      stakeholders; and

-     the ‘Business update on legal actions, Event of Default, proposed debt restructuring, rationale for a capital
      raise and Cautionary Announcement’ dated 12 May 2022 regarding, inter alia, the Event of Default and
      offers to holders of Afristrat’s securities and the ‘Renewal of Cautionary Announcement’ announcement
      dated 19 September 2022 advising holders of securities that restructuring initiatives are still underway
      and that holders of securities should continue to exercise caution when dealing with the Company’s
      securities. Afristrat has been unable to make additional progress in this regard due to the suspension of
      its listing. The restructuring initiatives process, which will include an offer to holders of securities, is
      expected to be resumed once the suspension is uplifted.


30 September 2022
Pretoria

Sponsor
Merchantec Capital

Date: 30-09-2022 09:00:00
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