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Pin to quick picksCambria Africa Regulatory News (CMB)

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Trading and Legal Actions Update

18 Nov 2019 08:22

RNS Number : 7196T
Cambria Africa PLC
18 November 2019
 

Cambria Africa Plc

("Cambria" or "the Company")

 

Trading and Legal Actions Update

 

 

The Company has finally had visibility on trading and a number of legal issues since its RNS of August 2019 which it can now update shareholders on.

 

Second Half Fiscal Year Results and Net Asset Value (NAV):

 

The Company expects to release Audited results by mid-February 2020. Operating profits in US dollars for the second half of the 2019 fiscal year did not meet management's worst expectations. The rapidly depreciating exchange rate has rendered operating profits negligible, however the company continues to trade profitably in Zimbabwe dollars (ZWL) which has depreciated from an opening exchange rate to the US dollar of ZWL$2.50 in February 2019 to an interbank selling rate of over ZWL$17.00 - a 580% decline.

 

Excluding any legal claims, unlisted securities, or time-indeterminate receivables from the Reserve Bank of Zimbabwe (RBZ), the Company currently holds US dollar assets totalling $6.8 million. This includes cash assets of $1.3 million, expected short term RBZ receipts of $900,000, marketable securities of $630,000, real estate assets of $2.5 million, shares in Radar Holdings Ltd of $1.1 million and further tangible assets in inventory and fixed assets of $365,000.

 

The Company's liabilities stand at $520,000 of which $443,000 is due to Ventures Africa Limited, the majority shareholder of Cambria. The balance relates to ZWL obligations which at the current exchange rate totals $77,000.

 

Hence, the Company's realisable NAV is estimated by the Board at1.15 US Cents (0.89p) per share without attributing any value to the going concern operations of its subsidiaries or its technology.

 

Trading Updates

 

US $400,000 Legacy loans/ Blocked Funds allocated by RBZ 

 

Governor John P. Mangudya of the RBZ has allocated at parity (US$1: ZWL$1) the sum of US $400,000 of US $1.3 million owed by Paynet Zimbabwe to Payserv Africa Limited, our wholly owned subsidiary in Mauritius. While the commitment by the Governor to expunge the full amount of legacy debts by mid-September has been met with delays, we believe that he has shown tangible good faith in fulfilling his promises in this regard.

 

Relying on the Governor's written commitment, in its Interim Results published on 31 May 2019, the Company announced that the RBZ would expunge Paynet Zimbabwe's obligations to Payserv Africa by mid-September 2019. Citing Zimbabwe's poor tobacco receipts, Governor Mangudya rescheduled his commitment to mid-October. On his behalf, Deputy Director of Financial Markets Ernest Matiza, then committed to weekly allocations of US $100,000 starting in the week of 30 September. To date, Paynet Zimbabwe has been able to confirm four of the seven allocations which have come due. Paynet Zimbabwe continues to constructively engage the RBZ on this matter.

 

 

EcoCash Commercial Agreement Reached

 

Paynet Zimbabwe has concluded a fee-sharing arrangement with EcoCash Zimbabwe for the use of bulk payment software developed by Payserv Africa. The software will be used by merchants using EcoCash to distribute salaries and initiate payments to other merchants. EcoCash is Zimbabwe's dominant mobile payments operator.

 

Legal Updates

 

Exception to summons against BAZ upheld and case dismissed with costs

 

Further to our RNS announcement on 6 August 2019, relating to Payserv's summons seeking damages of $100 million from BAZ, the Company has been advised that the Exception filed by BAZ has been upheld by Justice Mushore and Payserv's lawsuit has been dismissed with Payserv liable for BAZ's legal costs. Through its Payserv subsidiaries, the Company intends to reissue summons against the BAZ and/or individual banks as guided by its Senior Counsels. The detailed judgement is expected to be issued following the ruling. The Company is also considering invoking the Doctrine of Effect to claim jurisdiction against certain banks in South Africa and the European Union.

 

Arbitration related to share purchase in Radar Holdings Limited (Radar) through Hinshaw Investments (Pvt) Ltd (Hinshaw)

 

The Arbitration award remains outstanding with respect to the Company's action through Paynet Zimbabwe to enforce its minority rights to purchase a further 20% of shares in Hinshaw, which has a 79.65% shareholding in Radar. The Arbitrator had targeted 11 November 2019 for his ruling. The Company funded its acceptance of what it believes to be an irrevocable offer by Caulicle Investments (Pvt) Ltd, a 20% shareholder of Hinshaw, to sell its entire shareholding of Hinshaw shares. If the award is in favour of the Company, Paynet Zimbabwe will control 24.9% of Radar indirectly through Hinshaw. The Company continues to believe that Radar is well positioned as a defensive investment in Zimbabwe.

 

Summons to banks for Payment of outstanding fees to Payserv Africa and Paynet Zimbabwe

 

The Company believes that bank clients of Paynet Zimbabwe owe Payserv Africa and Paynet Zimbabwe over US $2.0 million in transaction fees (which have not been included in the NAV calculation above). Its relevant subsidiaries are in discussion with counsel with respect to its recovery strategy.

 

Board and Executive Changes

 

The Company further announces that Mr Christian Beddies has resigned as CEO of Payserv Zimbabwe. He will remain a non-executive director of Payserv Zimbabwe Mr Samir Shasha, has been appointed the acting CEO. Mr Grant Flanagan has resigned from the Board of Tradanet as a result of conflicts arising from joining the Board of ZimSwitch.

 

 

 

Contacts

 

 

 

Cambria Africa Plc:

www.cambriaafrica.com

Samir Shasha

+44 (0)  20 3287 8814

 

 

WH Ireland Limited:

www.wh-ireland.co.uk

James Joyce / Matthew Chan

+44 (0) 207 220 1666

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
MSCBPBPTMBBBMPL
Date   Source Headline
1st Mar 20247:30 amRNSSuspension - Cambria Africa PLC
16th Feb 20247:00 amRNSHolding(s) in Company
9th Feb 202410:14 amRNSFinal Results Status and Update
4th Jan 20246:03 pmRNSHolding(s) in Company
15th Sep 20237:30 amRNSRestoration - Cambria Africa plc
14th Sep 20235:00 pmRNSInterim Results
14th Sep 20235:00 pmRNSAudited FY 2022 Results
11th Jul 20233:29 pmRNSProposed Paynet Software Agreement
31st May 20237:57 amRNSFinal and Interim Results status
1st Mar 20237:30 amRNSSuspension - Cambria Africa PLC
20th Feb 20232:39 pmRNSFinal Results Status and Update
27th Oct 202212:16 pmRNSInvestment update
30th May 20224:28 pmRNSInterim Results
31st Mar 20224:25 pmRNSAudited FY 2021 Results
28th Feb 20226:33 pmRNSREPLACEMENT - Trading Update FY 2021
28th Feb 20224:20 pmRNSTrading Update FY 2021
30th Jun 20213:00 pmRNSInterim Results
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16th Jun 20214:30 pmRNSAudited FY 2020 Results
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30th Mar 202011:00 amRNSPrice Monitoring Extension
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18th Nov 20198:22 amRNSTrading and Legal Actions Update
6th Aug 20194:29 pmRNSPaynet and Adviser Update
4th Jul 20197:00 amRNSPaynet and Payserv Sue BAZ for US $100 million
12th Jun 20191:12 pmRNSSuspension of Banks on Paynet Zimbabwe Platform
12th Jun 201910:53 amRNSPaynet update - suspension of services to banks
31st May 20197:00 amRNSInterim Results
5th Apr 20197:00 amRNSNew Appointments at Payserv Zimbabwe
1st Feb 20197:45 amRNSAudited 2018 Results
15th Jan 201912:45 pmRNSAnnual Results Update
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10th Jul 20182:45 pmRNSOpen Offer raises £2.1 million Equity
2nd Jul 20189:06 amRNSTrading Update & Open Offer Reminder
5th Jun 20187:00 amRNSPosting of Open Offer Circular
15th May 20181:38 pmRNSOpen Offer & Issue of Shares to Directors
20th Apr 20185:52 pmRNSInterim Results
27th Feb 20187:00 amRNSFY 2017 Audited Financial Results
21st Dec 20177:00 amRNSSubsidiary Appoints Sibert Dube CEO
23rd Oct 201710:33 amRNSTrading Statement
4th Oct 20173:15 pmRNSCompany Settles Dispute with Consilium

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