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ECSPONENT LIMITED - Independent Forensic Investigation into the Investment of a R100 million Preference Shares in VSS Financial Services

Release Date: 08/09/2020 12:00
Wrap Text
Independent Forensic Investigation into the Investment of a R100 million Preference Shares in VSS Financial Services

Incorporated in the Republic of South Africa
Registration number: 1998/013215/06
JSE Code: ECS – ISIN: ZAE000179594
Debt Issuer Code: ECSD
Hybrid Issuer Code: ECSH
(“the Company” or “Ecsponent”)


The board of directors of the Company (“the Board”) wishes to advise shareholders that it instituted
an internal investigation regarding the Company’s R100 million investment in the form of
redeemable preference shares (the “Investment”) in VSS Financial Services Proprietary Limited

An initial investment was made by the Company in preference shares of VSS, a wholly owned
subsidiary of MyBucks S.À. (“MyBucks”), on 3 January 2018 for an amount of R100 million. Details
of the terms of the preference shares and the investment opportunity were announced on 3 January
2018 on SENS.

Stakeholders are now advised that the Board, after completion of the internal investigation, decided
to institute an independent forensic investigation into possible misrepresentation on the merits and
purpose of the investment at the time of the initial investment proposal, which may have ultimately
resulted in financial loss to the Company.

Based on recommendations from the forensic investigators and legal representation obtained from
the external legal counsel of the Company, the Board has instructed its legal counsel to institute
legal action against certain parties whom the Company believes are potentially liable to Ecsponent
for actions taken by them that have resulted in possible losses to the Company, as further detailed
in the forensic report.

Shareholders are reminded that the Company’s claim against VSS for the preference share
Investment was settled in full by MyBucks through the issue of MyBucks shares to the Company, as
part of the debt restructuring and MyBucks share acquisition transaction that was approved by
shareholders on 20 November 2019.

Further details will be disclosed on SENS upon institution of the recommended legal action and once
the outcome of such legal action is known.

8 September 2020

Sponsor to Ecsponent
Questco Corporate Advisory Proprietary Limited

Date: 08-09-2020 12:00:00
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