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Delay in Publication of Results for the Year Ended 31 May 2023 and Cautionary Announcement
LABAT AFRICA LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1986/001616/06)
("Labat Africa" or "the Company")
ISIN Code: ZAE000018354 Share Code: LAB
FSE Code: LEI 9845000R73DF5EE41J88
DELAY IN PUBLICATION OF RESULTS FOR THE YEAR ENDED 31 MAY 2023 AND CAUTIONARY
ANNOUNCEMENT
Shareholders are advised that the Company appointed new auditors for the holding company
and its subsidiaries for the year ended 31 May 2023. There has been a substantial delay in the
finalisation of the audit work, partly due to the new audit firm interrogating the ongoing material
claim against the South African Revenue Service, which matter has been ongoing for more than
20 years. The auditors have requested management to provide additional evidence to support
the VAT claim against SARS and additional evidence to support the PAYE and other material
liabilities in the group. These matters are regarded as being material issues for the auditors and
has been taking time to resolve.
In addition to the above, the audit firm has required management to provide more support for
the growth in revenue in the company's valuation models for the cannabis industry as part of the
re-estimation of the fair value of the underlying assets pursuant to the acquisition of 80% in Romeo
Lima Air Proprietary Limited (known as Sweetwaters Aquaponics) as well as testing for impairment
of some of the carrying values of the intangible assets. Due to the high growth projections applied
by management, coming off a low base, the auditors requested management to support their
projections in-line with the requirements of IAS 36.
There are other matters which also still require finalisation.
The delay in publication of the results has resulted in the suspension of the Company.
The Company was aiming to publish reviewed results. However, given the time frame for the issue
of the Annual Financial Statements, there is no benefit to publishing reviewed results and the focus
is to finalise the audit of the related JSE requirements. The Company will then apply to the JSE for
the lifting of the suspension in trade in the securities of the Company.
CAUTIONARY ANNOUNCEMENT
Accordingly, shareholders are advised to continue exercising caution when trading in the
Company's shares until the announcement of the year end results.
Johannesburg
31 October 2023
SPONSOR
AcaciaCap Advisors Proprietary Limited
Date: 31-10-2023 05:35:00
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