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HUGE GROUP LIMITED (Registration number 2006/023587/06) Share code: HUG ISIN: ZAE000102042 (“Huge” or “Huge Group” or “the Company”) ANNOUNCEMENT IN RESPECT OF AN ADDITIONAL INVESTMENT IN HUGE NETWORKS The board of directors of Huge Group is pleased to announce that Huge Telecom Proprietary Limited (Huge Telecom), a wholly owned subsidiary company of the Company, has concluded an agreement (the Agreement) to acquire an additional 1 000 ordinary shares (the Additional Investment) in Huge Networks Proprietary Limited (Huge Networks) from Otel Communications Proprietary Limited (Otel Communications) for a purchase consideration of R15 million. As a result of the Additional Investment, Huge Telecom will hold 2 001 ordinary shares in Huge Networks, making Huge Networks a wholly owned subsidiary company of Huge Telecom. Huge Telecom acquired 100 ordinary shares in Sainet Internet Proprietary Limited (Sainet) from Connectnet Broadband Wireless Proprietary Limited (ConnectNet) for R25.8 million after Huge Group acquired ConnectNet on 30 March 2017. Sainet was a wholly owned subsidiary company of ConnectNet, which ConnectNet had acquired a few years earlier for R25.8 million. Shortly after these transactions, ConnectNet changed its name to Huge Connect and Sainet changed its name to Huge Networks. At the time, the annual revenue generated by Huge Networks amounted to R37.5 million. In May 2019, Huge Telecom subscribed for 901 ordinary shares in Huge Networks at par. Shortly thereafter, Huge Networks acquired the business of Otel Communications from Otel Communications and the business of Otel Business Proprietary Limited (Otel Business) from Otel Business. The purchase consideration for the business of Otel Communications was settled by the issue by Huge Networks of 600 ordinary shares. The purchase consideration for the business of Otel Business was settled by the issue by Huge Networks of 400 ordinary shares. Otel Business distributed its ordinary shares in Huge Networks to Otel Communications. For the financial year ended 28 February 2022, Huge Networks generated revenue of c. R104.8 million and EBITDA (earnings before interest, taxation, depreciation, and amortisation) of c. R13.5 million. Transaction categorisation and confirmation in relation to constitutional documents The Additional Investment is not categorizable as a transaction in terms of section 9 of the JSE Listings Requirements. Johannesburg 31 May 2022 Sponsor Questco Corporate Advisory Proprietary Limited
