| Tue 21 Dec 2010, 16:06 | | RAR - RARE Holdings Limited - Specific Issue of Shares for cash to raise R40 |
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RAR
RAR
RAR - RARE Holdings Limited - Specific Issue of Shares for cash to raise R40
Million: Revised Pro Forma Financial Effects
RARE HOLDINGS LIMITED
(Incorporated in the Republic of South Africa)
Registration Number: 2002/025247/06
Share Code: RAR ISIN: ZAE000092714
("the Company" or "RARE")
SPECIFIC ISSUE OF SHARES FOR CASH TO RAISE R40 MILLION: REVISED PRO FORMA
FINANCIAL EFFECTS
Shareholders are referred to the announcement released on SENS on 20 December
2010 regarding the subscription agreement entered into by the Company with
Stafric Investments and Management Services (Proprietary) Limited ("Stafric") to
raise equity capital through a specific issue of shares for cash to Stafric
("the Specific Issue"), in terms of which RARE will raise R40 million through
the issue of 100 000 000 ordinary shares with a par value of 1 cent each in the
Company to Stafric at an issue price of 40 cents per share.
Shareholders are hereby advised that the unaudited pro forma financial effects
on RARE before and after the Specific Issue have been revised as set out in the
table below. The pro forma financial effects, which are the responsibility of
the Company`s directors, have been prepared for illustrative purposes only to
illustrate how the Specific Issue may have affected RARE`s results for the year
ended 30 June 2010, based on the assumptions that:
- for purposes of the earnings and headline earnings per share calculations,
the specific issue was effective from 1 July 2009; and
- for purposes of the net asset value and net tangible asset value per share
pcalculations, the specific issue was effected on 30 June 2010.
It should be noted that the unaudited pro forma financial effects have been
prepared on RARE`s latest published results for the year ended 30 June 2010
taking into consideration the specific issue, and because of their nature, may
not fairly reflect RARE`s financial position, changes in equity, results of
operations or cashflows after the specific issue.
Before After % Change
Audited Pro forma
30 June 2010 30 June 2010
R R
Headline earnings / (loss) (32.11) (13.43) 58.18%
per share (cents)
Earnings / (loss) per share (65.43) (29.10) 55.52%
(cents)
Net asset value per share 141.85 87.89 (38.04%)
(cents)
Net tangible asset value per 121.64 78.39 (35.55%)
share (cents)
Notes:
1. Extracted from the audited consolidated results of RARE for the year ended
30 June 2010.
2. Basic earnings per share and diluted earnings per share are based on the
following assumptions:
- The interest charged was reduced by the cash raised at prime lending
rates.
- A tax rate of 28 % was applied.
3. Weighted average number of shares was computed as if the issue was effected
on 1 July 2009.
4. No transaction costs have been taken into account in the calculation of the
financial effect as it will not have a material impact.
5. Net asset value per share and net tangible asset value per share based on
the assumption that the proceeds of R40 million was received.
6. For purpose of calculating the net tangible asset value per share,
intangible assets were excluded.
Johannesburg
21 December 2010
Designated Adviser: PSG Capital (Proprietary) Limited
Date: 21/12/2010 16:06:02 Produced by the JSE SENS Department.
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