EcoCash Holdings 2nd Cautionary Announcement relating to the Renounceable Rights Offer of EcoCash Holdings Zimbabwe Ltd Shares

By Published On: April 27th, 2023Categories: Corporate announcement

SECOND CAUTIONARY ANNOUNCEMENT RELATING TO THE APPROXIMATELY US$30.3 MILLION RENOUNCEABLE RIGHTS OFFER OF ECOCASH HOLDINGS ZIMBABWE LIMITED SHARES.

1 INTRODUCTION
1.1 This Second Cautionary Announcement contains the details of the proposed Rights Offer referred to in our initial Cautionary Announcement that was published on the 5th of April 2023.

2 PURPOSE OF THE RIGHTS OFFER
2.1 The purpose of the Rights Offer is to raise approximately USD30.3 million required to redeem the Debentures in the Capital of EcoCash Holdings Zimbabwe Limited (“the Company”) that have a Maturity Date of 30 April 2023.

3 RATIONALE OF THE PROPOSED RIGHTS OFFER
3.1 There are competing needs for the foreign currency component of the revenues generated by the Company with the highest priority being given to the financing of the upgrade and maintenance of the digital platforms in use by the Company.

3.2 The Company is not able to secure foreign currency for purposes of redeeming the Debentures from the auction. Therefore, the only available option is to raise the required foreign currency from members through the Rights Offer.

3.3 If the proposed Rights Offer is not made, the Company will be faced with the risk of defaulting on its Debenture maturity obligations. This will damage the Company’s prospects of accessing future loan facilities.


Download Full Cautionary Announcement

EcoCash 2nd Cautionary Announcement relating to the Renounceable Rights Offer – 27 April 2023.pdf

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