Deneb Investments Limited (JSE:DNB) News - Category 2 Disposal Announcement DENEB INVESTMENTS LIMITED Registration number: 2013/091290/06 (Incorporated in the Republic of South Africa) JSE share code: DNB ISIN: ZAE000197398 (“Deneb” or the “Company”) CATEGORY 2 DISPOSAL ANNOUNCEMENT 1. INTRODUCTION Shareholders are advised that on 31 March 2022, the Company, through its wholly-owned subsidiary Sargas Proprietary Limited (“Sargas”), entered into an agreement (“Agreement”) with G S Prospects Proprietary Limited (registration number 2021/783664/07) (“Purchaser”), in terms of which Sargas will dispose of the immovable property known as Erf 8980, Worcester, Breede Vallei Municipality, Western Cape Province, in extent 40,2926 hectares (“Property”) together with the existing lease agreements in respect thereof, to the Purchaser, as a going concern, for a disposal consideration of R43 500 000 (“Disposal Consideration”) (“Disposal”). 2. RATIONALE FOR THE DISPOSAL The Property is no longer being utilised for the manufacturing operations of the Company, and is accordingly not regarded as core to the Company’s strategy. 3. DISPOSAL CONSIDERATION The Disposal Consideration of R43 500 000 will be paid in cash by the Purchaser to Sargas on the Transfer Date (as defined below). 4. APPLICATION OF THE DISPOSAL CONSIDERATION The Disposal Consideration will be used by the Company to settle outstanding debt. 5. CONDITION PRECEDENT The Disposal is subject to the Purchaser obtaining a loan against the registration of a mortgage bond over the Property by no later than 30 April 2022. 6. EFFECTIVE DATE OF THE DISPOSAL The effective date of the Disposal will be the date of registration of transfer of the Property into the name of the Purchaser (“Transfer Date”), which is anticipated as being on or about 1 August 2022. 7. WARRANTIES AND OTHER SIGNIFICANT TERMS OF THE AGREEMENT The Agreement contains warranties, representations and undertakings by Sargas in favour of the Purchaser and by the Purchaser in favour of Sargas, which are standard for a transaction of this nature. The Property is sold on a “voetstoots” basis. 8. FINANCIAL INFORMATION The value of the net assets comprising the Property, as at 30 September 2021, being the date of the last reviewed condensed consolidated financial results of the Company, was R42 600 000. The profit after tax attributable to the Property for the year ended 31 March 2021, was R3 424 230, based on the management accounts of the property division of Sargas for the year ended 31 March 2021 (“Management Accounts”). The Company is satisfied with the quality of the Management Accounts, however, shareholders are cautioned that they are unaudited. 9. CLASSIFICATION OF THE DISPOSAL The Disposal constitutes a category 2 transaction in terms of the JSE Limited Listings Requirements. Cape Town 1 April 2022 Sponsor PSG Capital Date: 01-04-2022 03:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.