We realise that it has been
some time since this site has been updated and that many of you have been waiting
patiently for an update. A lot has been happening over the last few months, and
many of them being uncertain outcomes due to transaction processes not
completed.
The biggest issue is that many
shareholders now demand their money back. Even though the investment was
represented as being a long term investment, the current economic situation in
the country has made people desperate to get money out to just survive.
We have taken all reasonable
steps to ensure the Bonatla deal could work. Unfortunately they were unable to
obtain a listing on the JSE. This is still evident as they are still suspended
and unlisted as at 17 September 2008.
Below is the time line of the deals to date.
April
2007 - SAGrowth Property Group is approached by Bonatla Property Holdings
with a buy-out deal by means of a share transaction. We launch Doc-U-Store
after signing some contracts for archiving work.
May
2007 to Aug 2007 - Negotiations and evaluations of both companies determine
the share ratio and highlight some structural changes needed for proposed roll
out plan.
Aug
2007 - SAGrowth shareholders approve transaction via resolution.
Sep
2007 - Sable Scanning - a company approached by SAGrowth with buyout deal to
incorporate them into Doc-U-Store business unit, approve the deal and begins to
work hand in hand with Doc-U-Store on expanding market share.
Oct
2007 - The re-listing is delayed due to Bonatla and certain incomplete
proposed transactions in their portfolio. Bonatla informs SAGrowth that they do
not have the funding as promised and that significant changes are to be made to
the transaction in order to comply with JSE regulation.
Nov
2007 Bonatla publish the prospectus and offer to our shareholders, in
this document they disclose debts previously unknown to the SAGrowth
management. The R30 Million debt to Nedbank SA and R5 Mil debt due to yet
another failed transaction in which this penalty was incurred.
This would be debt that
SAGrowth shareholders would take responsibility for, once the transaction was
completed. We also were informed that the SAGrowth/Sable transaction was to be
scraped and replaced by a Bonatla/Sable transaction. All of which was
negotiated without SAGrowths knowledge. As SAGrowth introduced Sable to the
opportunity and investment as part of the Doc-U-Store Business Unit, the
transaction with Bonatla was in contravention of the agreement between SAGrowth
and Bonatla.
Dec
2007 - Bonatla JSE Listing does not happen due to various unexplained
reasons. Bonatla management present various unreasonable conditions on the
SAGrowth management team, part of these demands is a pledge of all the shares
of the Storit 1 Property Pty Ltd Company that is the owner of the Samrand site.
We are unable to do this and that created some key distrusts issues between the
management teams of both groups.
Jan
2008 - Bonatla fail to list again. Sable and Bonatla agreement is signed
between those parties; the revised SAGrowth agreement (identical to Sable
agreement) gets rejected due to Bonatla being unable to commit to funding
requirements and listing deadline.
Feb
2008 - SAGrowth Board decides to withdraw from Bonatla deal due to the
above delayed processes and the inability of the Bonatla organisation to
provide any concrete time line for the transaction to be completed. A letter is
sending to inform Bonatla of this and to give them a last chance to review the
deal on offer.
Mar
Apr 2008 The management team of Storit 1 Property Pty Ltd make a
decision to sell the property due to pressure from shareholders that demand
money back on their share investments. The site is scheduled for auction in May
2008.
May
2008 The auction of the site fail to achieve the minimum price as to be
able to settle debt and pay out shareholders. Management set out to sell the
property to private investors. 2 Parties show interest. No official contracts
have been signed to date 10 June 2008.
June
2008 - An offer to purchase is signed by 1 party. The offer is subject to
certain conditions. Two key conditions are that the purchaser is able to secure
a bond on the property of at least 65% of the offer consideration, and second
that the property has all the documents related to the operation of the
property.
July
August 2008 the buyer of the property submit applications to all his
banks. The bond offers obtained is not suitable to the offer made. We are
unable to complete the works for the site occupation certificate due to cost
and funding restraints. This will affect the deal.
September
2008 The buyer inform me on the 16th of this month that he is unable to
secure the funding. Further the unfinished issues from City council regarding
the occupation certificate is going to be a dead end for the bank as they wont
issue a new bond unless such a certificate could be produced. During September
the company secretary resign from the company. Due to limited funds no office
is maintained for the group.
All communications is via this website and email.
The future of the company will rely on the sale of the assets. Our only option
is to find a suitable buyer for the site in Samrand and Doc-U-Store, so that
every person that invested capital could get back what they put in.
Unless the market changes dramatically and a buyer
present itself to us for these assets soon, we as SAGrowth might get into trouble as we do not have cash
flow to sustain the group and its assets. We further have no capital in the
group to continue the administration processes for the group. I am trying to
maintain communication with any one that request information from me. We should have a shareholder meeting soon to
finalise the next steps. The planning of this meeting is in process, and there
we will be able to decide what to do next.
If there are any questions
regarding these, or any one that feel he could assist in changing the
situation, then please send an email to this
email and we will answer them via mail. As it is impossible to
telephonically provide all this information to all the shareholders we request
that any and all communication be done via email to the above address so that
we can post it on the web for all to receive.