African Brick Centre said on Thursday that the sale of its Honeydew property was under re-negotiation after the buyer said it could not raise the full purchase price.

In August, African Brick announced a rights offer which, if fully subscribed for, would provide working capital for a 12-month period.

In the event that the rights offer was not fully subscribed for and no other rights other than that of Yakani Infraco, the controlling shareholder of African Brick, were subscribed for, then the African Brick Group would have had to undertake further means to ensure the adequacy of working capital for the next 12 months.

Subsequently, the number of rights offer shares subscribed for was 396.279 million ordinary shares representing 59.03% of the total number of rights offer shares available for subscription.

As a result, the group authorised the disposal and subsequent sale of portion 554 (a portion of portion 543) of the farm Boschkop, No. 199 I.Q Honeydew.

"The Honeydew property was sold unconditionally and not subject to any financing. However, the buyer informed the board that it could not raise the full purchase price and as a result, the agreement of sale is now in the process of being re-negotiated," African Brick said.

The group advised caution when dealing in its shares until a full announcement regarding the sale of the Honeydew property was made.

Source: I-Net Bridge

Publisher: I-Net Bridge
Source: I-Net Bridge