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AFRICAN DAWN Annual Report 2016

About us A brief history African Dawn Capital Limited (the “Company”, “Afdawn” or “Group”) was founded in 1998 as a micro finance business. Following its listing on the AltX in 2004, it grew into a niche finance provider specialising in micro finance, debtor discounting and structured property finance. As a result of its growth and corresponding increase in share price, Afdawn was able to acquire additional businesses and utilise shareholders’ funds to grow its loan books. By 2009 the Group had significant exposure to the property sector, mainly property developments that it had funded. The financial position of the Group then weakened in 2009 due to the collapse in the property markets and the associated increase in doubtful loans. This not only impacted the Group but also the majority of its executive management who, based on the increase in the share price, had entered into a highly geared single stock structure with Nedbank. The falling Afdawn share price triggered margin calls by Nedbank which, when not settled, led to Nedbank exercising its security and thereby becoming the single biggest shareholder in Afdawn. The majority of the executive directors were subsequently removed from the Board and from executive management. A new Board had to be constituted. The results of the forensic review have been handed over to the appropriate authorities and the process is in their hands. The current position Since the last annual report we managed to finalise both the Green Oaks and Elite transactions. These transactions will enable us to settle the SARS Liabilities and furthermore take us closer to a clean listed vehicle from which the vision can be implemented. These now need to be voted on by the shareholders. (For the two transactions.) Our report This report builds on the 2015 annual report. The 2016 report is guided by the Global Reporting Initiative (GRI3) reporting guidelines as part of guiding the users to a conclusion on the quantitative (financial indicators) and qualitative (social, environmental and sustainability) events reported on for the 2016 period. AFRICAN DAWN ANNUAL REPORT 2016 3


AFRICAN DAWN Annual Report 2016
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