Corpcapital - Cautionary Announcement
CORPCAPITAL LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1983/011384/06)
JSE Share code: CPA
ISIN: ZAE000034260
(`Corpcapital`)
CAUTIONARY ANNOUNCEMENT
Shareholders are referred to the announcement of 25 May 2005 setting out what is
to be proposed at a general meeting of the company to be held on 17 June 2005.
Arising out of a long running dispute with Ribbon Media Advertising Limited (in
liquidation) (formerly Corpcom Limited) (`Corpcom`), The Brian Puttergill Family
Trust (`claimant`) has brought an application seeking to prevent the company
from proceeding with the general meeting, being voluntarily wound up or making
any further payment to its shareholders, pending determination of arbitration
proceedings between the claimant and Corpcom. The claimant has previously
threatened but not pursued interdict proceedings, claiming that distributions to
shareholders by the company might prejudice its interests, as the company has
undertaken to issue shares in the company to the claimant if it succeeds against
Corpcom.
In giving an undertaking to issue shares to the claimant, the company has been
consistently advised by attorneys, counsel and senior counsel that the claimant
will not succeed in its dispute with Corpcom. On this basis the company has
concluded that the prospects of a successful claim by the claimant are remote
and, applying GAAP, has made no provision in its financial statements.
The company is opposing the claimant`s application. Senior counsel advises the
company that the application will not succeed. If, however, the application
were to succeed, this would have a material effect on the price of the company`s
securities. Accordingly and having regard to the inherent uncertainty of
litigation, shareholders are advised to exercise caution in dealing in the
company`s securities until advised further.
Melrose Arch
10 June 2005
Sponsor
Java Capital (Proprietary) Limited
Date: 10/06/2005 12:18:07 PM
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