LABAT AFRICA LIMITED - Labat to Exercise First Put Option - GRV Global R300m Funding Facility and Associated Dealings Announcement

Labat to Exercise First Put Option - GRV Global R300m Funding Facility and Associated Dealings Announcement

LABAT AFRICA LIMITED
Incorporated in the Republic of South Africa
(Registration number 1986/001616/06)
JSE code: LAB ISIN: ZAE000018354
(“Labat” or “the Company” or “the Group”)
FSE Code: LEI 9845000R73DF5EE41J88

LABAT TO EXERCISE ITS FIRST PUT OPTION IN TERMS OF THE GRV GLOBAL LLC R300M FUNDING FACILITY
AS IT RAMPS UP ITS DELIVERY OF PREMIUM GRADE CANNABIS TO THE AUSTRALIAN MARKET AND
ASSOCIATED DEALINGS ANNOUNCEMENT

Shareholders are referred to the announcement released on SENS dated 2 December 2021.

The Company announced that it has signed a put option agreement ('Agreement') with GR Global
Ventures LLC ('GRGV'), a United States of America ('USA') based investment group, to provide the
Group with up to R300 million in committed equity capital in cash over the next 36 months. The access
to capital comes at an opportune time for Labat Africa in line with its strategy on developing its
Cannabis focussed health care business. The agreement remains subject to certain conditions
precedent, one being the approval by shareholders of the issue of warrants to subscribe for
28 300 000 Labat shares at 50 cents per share, or an adjusted price which would be at a premium of
120% of the closing bid price in the event that the price is less than 45 cents after 6 months from the
date of issue of the warrants, and secondly, the provision of 24 000 000 security shares from a share
lender, namely Link Private Equity Proprietary Limited (“Link”), being a related party to two executive
directors of Labat, including the Chief Executive Officer. Link is also required to provide loan shares
from time to time, equal to the number of shares that are included in a Put Option Notice.

There have been delays in implementing the agreement due to the Company being in a closed
period as well as the Company consulting with the JSE on its requirements in relation to both the
agreement and the issue of the Warrants.

This Capital Commitment will be released based on drawdowns by Labat Africa in the form of put
options that Labat Africa has the right to exercise against GRGV at its sole discretion. The amount of
the drawdowns will also be decided by the Company and be dependent upon certain parameters
such as the Company's trading volume during the previous 15-day period and the price per share
during the forward-looking 30-day pricing period.

Draw Down
In view of the above, the company intends exercising its right to place between 14m and 28 million
shares to GRV GLOBAL LLC (LDA CAPITAL), as soon as the conditions precedent can either be
addressed or waived or deferred. The proceeds will be utilised to expand the newly acquired
Sweetwaters operation in the Eastern Cape. The business has delivered its second delivery of high-
quality pharmaceutical grade cannabis to the Australian market.

As announced earlier the acquisition of the Eastern Cape based facility provides Labat with
additional medical and pharmaceutical infrastructure in support of its Healthcare Strategy and
enables Labat to accelerate the delivery on its off-take agreement with International customers.
Security Shares
Shareholders are advised that In compliance with the JSE Limited Listings Requirements, the following
information is disclosed following the agreement between the parties, Link Private Equity, an
associate company will provide to the funder security of 24m (Twenty Four million) ordinary Labat
shares (“Security Shares”).

In compliance with paragraphs 3.63 to 3.74 of the Listings Requirements of the JSE Limited, shareholders
are advised that Link, an associate of Mr BG van Rooyen and Mr DJ O’Neill, both directors of the
Company, has provided shares in Labat as security for the loan from GR Global as follows:

 Name of director:                   BG van Rooyen
 Name of associate:                  Link Private Equity Proprietary Limited
 Name of company:                    Labat
 Date of transactions:               31 May 2022
 Number of securities:               12 000 000 (being 50% of 24 000 000)
 Class of securities:                Ordinary shares
 Price per share:                    Not applicable – provided as security
 Value of transactions:              Not applicable
 Nature of transaction:              Provision of shares as security
 Nature of interest for associate:   Direct
 Extent of interest:                 2.1%
 How traded:                         Not traded
 Clearance to deal obtained:         Yes


 Name of director:                   DJ O’Neill
 Name of associate:                  Link Private Equity Proprietary Limited
 Name of company:                    Labat
 Date of transactions:               31 May 2022
 Number of securities:               12 000 000 (being 50% of 24 000 000)
 Class of securities:                Ordinary shares
 Price per share:                    Not applicable – provided as security
 Value of transactions:              Not applicable
 Nature of transaction:              Provision of shares as security
 Nature of interest for associate:   Direct
 Extent of interest:                 2.1%
 How traded:                         Not traded
 Clearance to deal obtained:         Yes


Johannesburg
1 June 2022

Sponsor
AcaciaCap Advisors Proprietary Limited

Date: 01-06-2022 11:35:00
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