Wrap Text
2024 Annual General Meeting ("AGM") Results, Resignation Of CEO And Appointment Of New CEO
LABAT AFRICA LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1986/001616/06)
("Labat" or "the Company")
ISIN Code: ZAE 000018354 Share code: LAB
LEI 9845000R73DF5EE41J88
THE RESULTS OF ANNUAL GENERAL MEETING ("AGM") FOR THE FINANCIAL YEAR ENDED 31 MAY 2024 STATEMENTS
FROM THE CHAIRMAN OF THE BOARD, THE OUT GOING CEO, THE NEWLY APPOINTED CEO, CHANGES TO THE
BOARD AND
RESULTS OF ANNUAL GENERAL MEETING ("AGM") FOR THE FINANCIAL YEAR ENDED 31 MAY 2024
Shareholders are advised that at the AGM of Labat held on 23 January 2025, convened in terms of the Notice
of AGM contained in the Annual Report, the voting information is as follows:
Number of ordinary shares represented at the meeting 203 882 443
Total issued number of ordinary shares 669 025 769
Percentage of ordinary shares represented at the meeting 203 882 443
The resolutions proposed at the AGM, together with the percentage of votes carried for and against each
resolution, are set out below:
Number of votes
For Abstain Total Votes
Against (% of issued (excluding
% % share capital) abstentions)
Ordinary Resolution Number 1 – 203 732 443 0 150 000 203 732 443
Acceptance of the Annual Financial 100% 0% 0.02% 30.45%
Statements
Ordinary Resolution Number 2 – Director
retirement and re-election – Ms BA Penny RESOLUTION WITHDRAWN
Ordinary Resolution Number 3 – Re-election 203 638 943 93 500 150 000 203 732 443
of a director who retires in terms of the 99.95% 0.05% 0.02% 30.45%
Company's policy non-executive director
tenure – Ms RM Majiedt
Ordinary Resolution Number 4 – Re- 203 638 943 93 500 150 000 203 732 443
appointment and remuneration of auditors 99.95% 0.05% 0.02% 30.45%
Ordinary Resolution Number 5 – 203 638 943 93 500 150 000 203 732 443
Reappointment of Audit and Risk 99.95% 0.05% 0.02% 30.45%
Committee member – Mr R Mohamed
Ordinary Resolution Number 6 – Re-
appointment of Audit and Risk Committee RESOLUTION WITHDRAWN
member – Ms BA Penny
Ordinary resolution Number 7 - Re- 203 638 943 93 500 150 000 203 732 443
appointment of Audit and Risk Committee 99.95% 0.05% 0.02% 30.45%
member – Ms RM Majiedt
Ordinary Resolution Number 8 – 203 638 943 93 500 150 000 203 732 443
Endorsement of Labat Africa's 99.95% 0.05% 0.02% 30.45%
Remuneration Policy
Ordinary Resolution Number 9 – 203 638 943 93 500 150 000 203 732 443
Endorsement of the implementation of 99.95% 0.05% 0.02% 30.45%
Labat Africa's Remuneration Policy
Ordinary Resolution Number 10 – General 203 638 943 93 500 150 000 203 732 443
authority to allot and issue shares for cash 99.95% 0.05% 0.02% 30.45%
Special Resolution Number 1 – Convertible 203 638 943 93 500 150 000 203 732 443
into shares or rights that may exceed 30% of 99.95% 0.05% 0.02% 30.45%
the voting power of the current issued share
capital
Special Resolution Number 2 – Non- 203 638 943 93 500 150 000 203 732 443
Executive Directors' Remuneration 99.95% 0.05% 0.02% 30.45%
Special Resolution Number 3 – General 203 638 943 93 500 150 000 203 732 443
authority to enter into funding agreements, 99.95% 0.05% 0.02% 30.45%
provide loans or other financial assistance
Special Resolution Number 4 – General 203 638 943 93 500 150 000 203 732 443
authority to acquire (repurchase) the 99.95% 0.05% 0.02% 30.45%
Company's securities
Shareholders are advised that ordinary resolutions 2 and 6 have been withdrawn as Ms BA Penny had since
resigned. The Board will be appointing an independent non-executive director to fulfil the vacancy on the
Board as well as the Audit and Risk Committee in due course.
STATEMENT BY THE CHAIRPERSON OF LABAT AFRICA LIMITED –MS RM MAJIEDT
It is my pleasure to address you today as the Chairperson of this esteemed company, and I thank you for
taking the time to join us as we reflect on our journey over the 2023 and 2024 financial years, our performance,
and our future as a leading player on the African continent. At Labat Africa, we remain deeply committed to
building a sustainable business model that serves the best interests of our shareholders, employees, and the
communities in which we operate. It is with this commitment in mind that I present a summary of the
company's progress, challenges, and aspirations for the year ahead.
Performance Review: A Year of Resilience and Strategic Focus
Despite the challenges posed by a dynamic economic environment, Labat Africa has delivered a year of solid
performance. As a JSE-listed company, we continue to prioritize operational efficiency and innovation of
existing segments coupled with strategic acquisitions poised for growth.
Our revenue has shown a positive trajectory driven by the health care segment, underpinned by disciplined
cost management, a strong customer base, and the resilience of our teams who have navigated a complex
market landscape and regulatory uncertainty.
The years under review, we focused on driving value across our core sectors, including healthcare and
technology. We are particularly proud of the strides we've made in expanding our footprint across the country
through our CannAfrica franchise stores.
However, we also recognize the areas where improvement is required with the continued volatility being
experienced by the health care segment in main due to the amortisation and impairments of intangible assets
related to these businesses.
We are committed to addressing these challenges head-on, with the worst of the impairments behind us now.
The challenge for is to ensuring that we remain agile and adaptable in the face of both external pressures and
market evolution.
Sustainability and Governance: A Core Focus
As we look to the future, Labat Africa is increasingly placing governance and sustainability at the heart of our
strategy. We believe that a company that operates responsibly is better positioned to deliver value for
shareholders, employees, and society at large.
Our governance structure remains robust, with rigorous checks and balances, to ensure transparency and
accountability to all stakeholders and further improvement will be made in due course. In this light I would like
to welcome two new members of the Board of Directors
• Mr Irfaan Noor Mohamed
• Mr Farook Paruk
These individuals bring a vast and diverse set of skills and experience to the Board to enable the company to
set its path on a growth trajectory in the technology sector. Further appointment to the Board will be
announced in due course to ensure that the necessary skills and competencies exist to take the company into
its next growth phase.
Looking Forward: Growth and Expansion:
The next 12 months represent a period of exciting opportunities for Labat Africa. We are poised to accelerate
our growth through strategic investments in innovation. Our vision for the future includes expanding into new
markets, strengthening our competitive edge, and continuing to diversify our portfolio. Further details in this
regard will be communicated in due course by the company but need less to say that the Company is poised
for a strategic shift in direction and growth. We recognize that your support is critical, and as such, we will
continue to work tirelessly to deliver sustainable value and uphold the trust you have placed in us.
Acknowledgements and Gratitude
Before I conclude, I would like to take a moment to reflect on the significance of a sentimental back drop that
saw the passing away of Mr Victor Labat one of the founding members of the Company. His invaluable
dedication and sacrifices that must be celebrated today in his lasting legacy that he created as we consider a
new path for the company and the next growth phase. I also acknowledge the tireless efforts of our
management team, employees, and partners. Their dedication, resilience, and commitment to excellence
have been integral to the success of Labat Africa this year.
To our shareholders, thank you for your continued support and confidence in our leadership. We are excited for
what lies ahead, and we are determined to continue working collaboratively to achieve our vision of a
stronger, more sustainable future. In closing, I would like to express my gratitude once again for your
participation today. Your involvement is vital to our collective success, and we look forward to engaging with
you in constructive dialogue during this meeting.
STATEMENT BY OUTGOING CEO BRIAN VAN ROOYEN STEPPING DOWN AFTER 30 YEARS
Thank you for joining us today for this pivotal moment in the re-ignition and evolution of Labat Africa. The
carefully structured plan for our re-emergence after our suspension in October 2023 has delivered the
outcomes that we desired. We are back with a mission. It is a mission that will deliver value for each of our
shareholders…our primary beneficiaries.
It has been my privilege to serve as the CEO of Labat for the past 30 years. Over these three decades, we
have grown from a multi-industry company into a recognised market leader, making significant contributions
across a variety of sectors, including manufacturing, logistics, healthcare, and cannabis. Throughout this
journey, our commitment to small business development, creating jobs for youth and supporting South Africa's
economic growth have been central to our mission.
Over the past five years, we have focused considerable effort and resources on the medicinal cannabis and
healthcare sector. We've been at the forefront of this industry, working tirelessly to navigate regulatory hurdles,
build a strong market presence, and contribute to the development of a legal cannabis economy in South
Africa.
Our research and development work though our subsidiary companies in the medicinal cannabis value chain
has resulted in significant new value in our healthcare business. The intellectual property, knowledge
infrastructure and data sets on South African cannabis consumption is the envy of many across the world. The
Cannafrica retail chain of self-care and wellness outlets grew to a national footprint of 104 stores at the end of
the 2024 calendar year…the largest chain of CBD Dispensaries in the southern hemisphere and 4 th largest,
globally. Our progress has been substantial, and we are proud of the groundwork we've laid and the jobs
we've created. We have reflected on our journey, and are disheartened by the lack of enabling regulatory
reform in South Africa.
The slow pace at which changes are being implemented by the state and its relevant agencies has resulted in
the closure of many enterprises in the sector, and has left numerous licensed cultivation facilities dormant after
significant capital investments which is north of R1B. Many of you are aware that another locally listed cannabis
company (CiloCybin) announced last week that they are withdrawing from the South African cannabis market
and instead focusing on international opportunities such as Australia. The delay in the implementation of a
sound regulatory framework have made it increasingly difficult to move forward with the confidence that the
inherent financial returns for our shareholders' demand with the desired predictability that we all deserve.
The as part of the Board's mandate it will continue reviewing the risks associated with Labat's continued
participation in the cannabis sector and will make appropriate decisions in this regard in the near future. In the
meantime, the Board has decided to strategically diversify Labat's business interests with the integration of a
fintech sector into the business, which can only bode well for Labat Africa and all shareholders given the
company's historic track record in the technology sector. In line with this strategic shift, I am excited to
announce the acquisition of Classic International Trading Pty Ltd, which will play a pivotal role in Labat's
evolution.
This acquisition has already brought significant benefits to the company and will continue to bring new
opportunities to integrate valuable technology and IT assets, positioning Labat Africa for future growth in the
digital age. We believe this move will unlock new pathways to innovation and create exciting prospects for our
stakeholders. These recent decisions made with the future of Labat Africa in mind. It will allow us to protect
shareholder value while minimizing the risks that the current regulatory environment poses.
We are committed to ensuring the long-term success of the company and will continue to explore strategic
alternatives that will position Labat for growth in new areas. It is with a great sense of pride that I introduce Mr.
Irfaan Mohammed as CEO. Irfaan brings over 20 years of experience in the ICT sector, and I am confident that
his leadership and expertise will guide Labat Africa into an exciting new chapter of growth. Labat will continue
to build on the foundation we've created and ensure that the company's proposition remains at the forefront
of innovation and opportunity. I am committed to ensuring a smooth and seamless transition for all of our
stakeholders, including our shareholders, our subsidiary companies, our franchisees, our collaboration partners,
academic & research institutions and research participants. I will work closely with our board of directors and
executive team to facilitate the handover to Irfaan as the new CEO.
While I may be stepping down from my day-to-day responsibilities as CEO, I will continue contributing to the
success of Labat in my role as a director. Together, we will work to ensure that Labat remains a leader in our
industry and continues to deliver value for all of our stakeholders. I want to express my heartfelt gratitude to all
of our stakeholders for their continued support and partnership over the years. Your trust and confidence have
been instrumental in our success, and I am deeply grateful for the opportunity to have served as founding CEO
with 30 years at the helm.
OPENING STATEMENT FROM MR. IRFAAN MOHAMMED (INCOMING-CEO)
It is an honour to join Labat Africa as the Group CEO. This is after more than 30 years of Brian's competent
leadership which will be big shoes to fill indeed but I am up for the challenge. I would like to take this moment
to acknowledge Brian and the Labat team for their extraordinary achievements and for guiding the company
through many challenges over the years.
Labat Africa's resilience and adaptability have been key to its long-standing tenure, particularly in its ability to
remain listed on the JSE and to continue to evolve in an ever-changing economic landscape, through global
economic recessions, through the Covid pandemic and in the period since the end of lockdown. One of the
most remarkable aspects of Labat's journey has been its bold and maverick approach to entering and
navigating the cannabis sector. As we embark on an exciting new chapter, we are thrilled to embrace a bold
focus on technology and innovation, starting with the strategic integration of Classic International into Labat
Africa.
This transformative step marks a pivotal moment as we position ourselves for a future defined by cutting-edge
technologies such as artificial intelligence (AI) and advanced IT infrastructure. In today's world, data and AI
are becoming indispensable drivers of decision-making, efficiency, and innovation, reshaping industries and
creating unprecedented opportunities. By entering the dynamic and fast-growing Fintech space through
Classic International's valuable assets and expertise, we are unlocking significant opportunities to diversify our
revenue streams, enhance market leadership, and drive sustainable long-term growth.
This evolution underscores our commitment to staying ahead in a rapidly evolving digital world, delivering
value to our shareholders, and empowering our stakeholders in new and innovative ways. The Board and I will
deliberate on an exciting pipeline of acquisitions that will add strategic value to Labat and its Shareholders in
the medium term. I want to express my heartfelt thanks to Brian and the board of directors for believing in the
vision of Classic and for trusting me to lead Labat into this next phase. The journey ahead is one of immense
opportunity, and I am confident that together we will continue to build on the solid foundation established
over the last 30 years. I look forward to working alongside the entire Labat team under the custodianship of the
board of directors as we forge ahead in this exciting new chapter in the company's history.
APPOINMENT OF HERSCHELL MAASDORP AS A DIRECTOR OF LABAT AFRICA.
Shareholders are advised that the board of directors of the company has appointed Herschell Maasdorp to
the board as an executive director. The company welcome Mr Maasdorp to the board. He is responsible for
the Cannafrica retail operation in the healthcare business.
BY ORDER OF THE BOARD
Johannesburg
23 January 2025
JSE Sponsor
Vunani Sponsor
Date: 23-01-2025 04:55:00
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