LABAT AFRICA LIMITED

Incorporated in the Republic of South Africa

(Registration number 1986/001616/06)

JSE code: LAB ISIN: ZAE000018354

("Labat" or "the Company" or "the Group")

FSE Code: LEI 9845000R73DF5EE41J88

TERMINATION OF SALE OF SHARES AGREEMENT WITH LEAF BOTANICALS PROPRIETARY LIMITED ("Leaf Botanicals") AND COMPLETION OF SUSPENSIVE CONDITIONS RELATING TO THE 80% ACQUISITION OF A SAHPRA APPROVED CULTIVATION OPERATION IN SOUTH AFRICA

Leaf Botanicals

Shareholders are referred to the announcement released on SENS dated 19 May 2021 wherein Labat entered into an Agreement for the acquisition of 75% of Leaf Botanicals.

As detailed in the year end results announcement published on 31 December 2021 the Leaf Botanicals acquisition was terminated due to Leaf Botanicals no longer wishing to pursue the transaction following the discovery that the product was not up to standard and the inability to find a suitable way forward. Following further discussions, the termination has been accepted by Labat.

In view of the above, the issue of 11 250 000 shares to the shareholder of Leaf Botanicals will be cancelled and the Company is in the process of applying to the JSE for the delisting of the shares.

Sweetwaters Acquisition

Shareholders are referred to the announcement published on SENS on 2 March 2022 and are advised that suspensive and closing conditions relating to the acquisition of 80% of shares and claims in Lima Romeo Air Proprietary Limited, known as Sweetwaters, which is a fully operational SAHPRA approved medicinal cannabis cultivation facility in Kenton-on-Sea in the Eastern Cape of South Africa ("the Acquisition") have been met including the payment of the full purchase price. The acquisition is now unconditionally implemented.

As announced earlier the acquisition of the Eastern Cape based facility provides Labat with additional medical and pharmaceutical infrastructure in support of its Healthcare Strategy and enables Labat to accelerate the delivery on its off-take agreement with a Swiss pharmaceutical group.

Johannesburg

17 March 2022

Sponsor

AcaciaCap Advisors Proprietary Limited

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Labat Africa Ltd. published this content on 17 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 March 2022 14:10:03 UTC.