Afdawn said it had to settle the R8.24m debt with Sars after it received a settlement gain of R11.8m last year. It said it also issued 26.8 million shares to Arvesco 153 at 35 cents a share in December to meet other obligations and to recapitalise its Elite Group subsidiary.
“The Arvesco transaction further de-risked the group and made it possible to access capital markets in the future. Arvesco, through its networks, will give the group access to funding and new revenue opportunities,” the group said.
Elite, a credit provider, was negatively affected by limited new funding while repaying Zarclear, with the group stating that this led to a decline in advances and revenues.
“Elite continued to reduce cash operating costs. Elite has excess capacity for growth, but needs funding to leverage it’s lending platform. The Zarclear debt will be repaid in full by March 2020,” the group said.