MM Suping agreed to acquire Nutritional Foods (Proprietary) Limited from Nutritional Holdings Limited (JSE:NUT) for SAR 15.2 million on May 19, 2021. As of June 18, 2021, MM Suping signed a formal agreement to acquire Nutritional Foods (Proprietary) Limited from Nutritional Holdings Limited. Out of SAR 15.2 million, SAR 0.25 million is non-refundable deposit and the provision of a guarantee for the balance within 90 days thereafter. The SAR 0.25 million deposit still needs to reflect in Nutritional Holdings Limited bank account. As of June 18, 2021, the non-refundable deposit of SAR 0.25 million has been received and the balance of SAR 14.95 million is payable within 120 days from the effective date, being the end of October 2021. As of August 2, 2021, shareholders are advised that MM Suping notified the Board of his resignation as a non-executive director, with effect from July 31, 2021. Shareholders are advised that MM Suping would still remain as a Director and the Chief Executive Officer of Nutritional Foods. The value of the net assets of Nutritional Foods as at February 28, 2021 was a negative liability position of SAR 4.8 million and the loss attributable to Nutritional Foods for the year ended February 28, 2021 was SAR 0.38 million.

The disposal is conditional on a formal sale agreement being signed and any other regulatory and shareholder approvals, if required. It is also subject to written confirmation of no legal claims, or full and final settlement thereof, on the effective date; the purchaser confirming a satisfactory due diligence in writing; payment of the balance of the purchase consideration; board approval by the seller; and any other written confirmation required in terms of the change in shareholding of Nutritional Foods. As of August 2, 2021, the conditions precedent to the acquisition is still remain as at date. The disposal does not require shareholder approval nor a fairness opinion from an independent expert. The effective date of the transaction is on June 30, 2021. The proceeds of the Disposal will be applied by the company to the working capital requirements to fund the growth of Ukusekela Holdings (Pty) Ltd, the cannabis arm of Nutritional Holdings. AcaciaCap Advisors Proprietary Limited is the designated advisor of Nutritional Holdings Limited.