PEMBURY LIFESTYLE GROUP LIMITED - Update on the Mellow Oaks Property

Update on the Mellow Oaks Property

PEMBURY LIFESTYLE GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 2013/205899/06)
(“the Company” or “Pembury”)
ISIN Code: ZAE000222949      JSE Code: PEM


UPDATE ON THE MELLOW OAKS PROPERTY


Shareholders are referred to the Mellow Oaks Property announcement published on 30 April 2019
and the Summarised Audited Consolidated Condensed Results for the Year Ended 31 December
2018 announcement (“Results Announcement”) published on 2 May 2019 and are advised of the
following additional information in relation to the Reportable Irregularity:

1.   The property vendor was JH van Dyk Enterprises CC (“Van Dyk”), which entity received
     4 800 000 shares at R1 per share ahead of the listing of the Company on 31 March 2017.

2.   The equity investor was the Black Management Investment Forum (“BMFI”), who invested in the
     Company as initially announced on 2 June 2017. All the proceeds derived from the BMFI share
     purchase flowed to the Company. Of the monies received, R4.8 million should have been paid
     by the Company to Van Dyk on 13 October 2017 when registration of transfer of the property
     was effected to the Company.

3.   When it was discovered that the R4.8 million had been spent within the group, a settlement
     agreement dated 27 August 2018 bearing interest at 15% pa from 1 October 2017, was signed
     with Van Dyk.

4.   Due to the later default in the terms of this settlement agreement, Van Dyk attached one of
     the assets of the group on or about 7 November 2018, being the Mellow Oaks property but the
     attachment was not made known to the Company at the time as previously announced.

5.   The financial statements for the year ended 31 December 2017 were restated to account for
     the liability of R4.8 million and to account for the interest accrued on the loan.

6.   The Company has since launched legal proceedings to prevent any dealings with the property
     pending finalisation of an action to be instituted to overturn the execution of the sale based
     on perceived irregularities from November 2018 through to the property auction in March 2019.


Johannesburg
6 June 2019

Designated Advisor
Arbor Capital Sponsors

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