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NUTRITIONAL HOLDINGS LIMITED - Update on Supply Contracts Signed and Cautionary Announcement
2021/05/11 09:44:00Download PDF Stock report
Update on Supply Contracts Signed and Cautionary Announcement
NUTRITIONAL HOLDINGS LIMITED
(Registration number: 2004/002282/06)
(Incorporated in the Republic of South Africa)
(Share Code: NUT ISIN Code: ZAE000156485)
(“Nutritional Holdings” or “the Company”)
UPDATE ON SUPPLY CONTRACTS SIGNED AND CAUTIONARY ANNOUNCEMENT
Shareholders are referred to the announcements published on SENS on 9 September and
11 November 2020 respectively, regarding contracts concluded by the Company.
The contracts concluded by the Company are with the following entities, which are
subsidiaries of and handle the distribution for Ashmore General Trading Company, a Company
registered in Dubai with licence number: 762707
- GIH Distributors (“GIH”) - the contract provides for the supply of “the Immune Booster” to
Germany.
- Grovenor Supplements FZCO (“GS”) – the contract provides for the supply of CBD Products
to the Ashmore subsidiary based in Ajman UAE, a distribution centre, which is to supply the
Asian market, including Japan.
A summary of key elements of the contracts are set out below:
Computation ZAR
Date of Commencement Duration of Cancellation of contract Contract
Contract agreement of supply contract terms value Value
GIH 7 September January 2021 3 years – Breach or Year 1 – R1.26 Billion
2020 Varying non- 50 000 units
quantities performance, per month at
which is not R300 per unit,
rectified increasing to
200 000 per
month in year
3
GS 23 September April 2021 24 months Breach or Year 1 – R776 Million
2020 - fixed non- monthly
quantities performance, product A
which is not and B of
rectified 60 000 units
each at R349
and R190 per
unit
respectively
The commencement of supply of these contracts was slightly delayed due to COVID-19
affecting global supply chains. However, as indicated above, supply in respect of both
contracts has commenced and the Board is pleased to advise that the Company is meeting
its full production requirements.
CAUTIONARY ANNOUNCEMENT
Nutritional Holdings is continually seeking to grow its footprint and shareholders are advised
that the Company has entered into negotiations regarding additional global contracts which,
if successfully concluded, may have a material effect on the price of the Company’s securities.
Shareholders are furthermore advised that the Company is in the process of preparing a profit
forecast, which will be reviewed by its Auditors in accordance with the JSE Listings
Requirements, for purposes of providing further clarity to the market in terms of the expected
profitability of the Company.
Shareholders are accordingly advised to exercise caution when dealing in the Company’s
securities until further announcements in respect of the outcome of the above negotiations
and the profit forecast are made.
By order of the Board
Durban
11 May 2021
Designated Advisor
AcaciaCap Advisors Proprietary Limited
Date: 11-05-2021 09:44:00
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