Nutritional Holdings shareholders warned to exercise caution as company negotiates contracts
Share this article:
DURBAN - NUTRITIONAL Holdings yesterday warned its shareholders that it had entered into negotiations regarding additional global contracts, which might have a material effect on the price of the company’s shares.
The warning comes after the investment holding company concluded two contracts worth more than R2 billion with overseas companies. Nutritional Holdings has interests in the manufacture, marketing and distribution of staple dry foods, cannabis infusions, oils, extracts and related edibles.
Nutritional Holdings concluded a R1.26bn three-year contract with GIH Distributors for the supply of Immune Booster to Germany. It will supply 50 000 units a month to GIH. This will increase to 200 000 units a month in the third year. The contract started at the beginning of January.
The group also concluded a contract with Grovenor Supplements FZCO. The two-year contract, which started last month, is worth R776 million. It provides for the supply of CBD Products to the Ashmore subsidiary based in the United Arab Emirates for the products to be supplied to Asian markets and Japan. The group will provide 60 000 units of CBD Products a month to the market.
The contracts were concluded last year, but the Covid19 outbreak delayed their execution until early this year
“The commencement of supply of these contracts was slightly delayed due to Covid19 affecting global supply chains. However, supply in respect of both contracts has commenced, and the board is pleased to advise that the company is meeting its full production requirements,” the group said.
Nutritional Holdings added that it was continually seeking to grow its footprint, and shareholders were advised that it has entered into negotiations regarding additional global contracts, which, if successfully concluded, might have a material effect on the price of the company’s securities.
“Shareholders are furthermore advised that the company is in the process of preparing a profit forecast, which will be reviewed by its auditors in accordance with the JSE Listings Requirements, for purposes of providing further clarity to the market in terms of the expected profitability of the company,” it said.
The group advised shareholders to exercise caution when dealing in the company’s shares until further announcements on the outcome of the negotiations and the profit forecast had been made.
Nutritional Holdings acquired Ukusekela Holdings last year. The subsidiary contributed to the group’s turnaround in profitability, with half-year earnings up by 325 percent for the six months to the end of August 2020.
Nutritional Holdings shares closed unchanged at 1 cent on the JSE yesterday.