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AFRICAN DAWN ANNUAL REPORT 14

Notes to the Financial Statements continued AFRICAN DAWN 5 5 ANNUAL REPORT 2014 Group Company 2014 2013 2014 2013 R '000 R '000 R '000 R '000 13. Share capital Authorised 5,000,000,000 Ordinary shares of 1c each 50,000,000 50,000,000 50,000,000 50,000,000 The total shares in issue as at 28 February 2014 amounted to 508 184 155. Reconciliation of value of shares issued: Reported as at 1 March 2013 284,634 284,634 284,634 284,634 Issued Ordinary 5,074 5,074 5,074 5,074 Share premium 292,392 292,392 292,392 292,392 Treasury shares (12,832) (12,832) (12,832) (12,832) 284,634 284,634 284,634 284,634 As part of the capital raising completed on 31 October 2011, two convertible bonds were issued which are convertible into ordinary share capital at the option of the holder after 3 years from the commencement date. Further details on the convertible bonds are disclosed in note 15. Unissued shares: At the annual general meeting 5% (2013:5%) of the issued ordinary share capital at the time of the meeting were placed under the control of the directors until the next annual general meeting. 15. Compound instruments Convertible bond terms During 2012 two separate convertible bonds were issued. The holders of the instruments had the ability to redeem the amount owing in cash or convert the amount owing into equity shares. This discretion gives rise to the existence of a contractual obligation of one party to deliver cash or another financial asset to another party, or to exchange financial assets or liabilities under conditions that are potentially unfavourable. The terms of the bonds are similar, being convertible over 36 months from issue (3 November 2011), conversion price set at 14 cents for capital plus any arrears interest at JIBAR + 600 points. • The convertible bond agreement to Sandown was for a subscription of R10,000,000 which was settled. In 2012 Afdawn negotiated with Sandown to repay the unutilised portion of the convertible bond under an acknowledgment of debt agreement. The remaining portion was drawn down in 2013. • The PCI convertible bond loan was paid in terms of the agreement to the amount of R1,700,000 and the interest has been raised and repaid quarterly in terms of the agreement. During the 2013 period, the board signed a cession that resulted in the PCI convertible bond being transferred to STRB Lewende Trust. The cession stipulates that the new owner has the same rights and responsibilities as the previous owner with all terms and conditions remaining the same. The Sandown Convertible bond with Elite Group Proprietary Limited has been transferred to Liabililities Held for Sale.


AFRICAN DAWN ANNUAL REPORT 14
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