EXXOTEQ LIMITED - UPDATE ON FINANCIAL POSITION AND
EXXOTEQ LIMITED - UPDATE ON FINANCIAL POSITION AND RENEWAL OF CAUTIONARY
Exxoteq Limited
(Formerly Wild Rush Trading 12 Limited)
Registration number 2002/010132/06)
JSE Share Code: EXO
ISIN: ZAE000050183
(`Exxoteq` or `the company`)
UPDATE ON FINANCIAL POSITION AND RENEWAL OF CAUTIONARY
Further to the cautionary announcement dated 8 June 2004, in which it was stated
that negotiations were underway which may have an effect on the price at which
the company`s securities trade on the JSE Securities Exchange South Africa, the
company now wishes to update shareholders on its financial position.
At the time of his recent death in a motor vehicle accident, the former chairman
of the company, Mr Prem Sawney, was in the late stages of concluding a series of
transactions (`the transactions`) whereby an investor would invest equity
amounts totalling up to US$5 million in the development of certain of the assets
of the company. Had one or more of the transactions been concluded, it would
have ensured that the company had more than adequate working capital resources
for its intended operations and allowed the further development of the company.
The company has been attempting to conclude the transactions and to this end has
arranged for negotiations to continue in Dubai early next week. An amount of
US$4.2 million has been deposited in a dollar account with Absa Bank in South
Africa and has been earmarked for the transactions. Negotiations are at an
advanced stage for the release of these funds on a per project basis. Although
the fact that this money has been so deposited is encouraging, none of the
transactions has, as yet, been concluded and this money is not currently
available to the company.
In the event of a negative outcome on the transactions, the company will be able
to meet its running costs up to 30 June 2004, at which time it could start to
shut down operations in an orderly manner. To this end, the company has pre-
emptively commenced with a retrenchment exercise for all personnel.
Shareholders are advised to continue to exercise caution in dealing in their
shares until a further announcement can be made.
Cape Town
18 June 2004
Sponsor
LPC Manhattan Sponsors (Pty) Ltd
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